" I DEFENSE SECURITY ASSISTANCE AGENCY . WASHINGTON. D.C. 20301 15 September 1986 . In reply refer to:· ,", . .,,,_ .... Transmit ta 1 No. 7 DOD 5105. 38-M MEMORANDUM FOR RECIPIENTS OF· bOD 5l05.38-M, SECURITY ASSISTANCE MANAGEMENT MANUAL (SAMM) SUBJECT: SAMM Change 7 Transmittal The attached revised material updates the basic publication. Make the applicable change to the sAMM in accordance with the attached list of changes by inserting new pages. This change is effective 15 September 1986. Attachments 1. List of Changes 2. List of Effective Pages 3. List of material incorporated within Change 7 4. SAMM Updated pages ht;1ic GAST LIEUTENANT GENERAL, USAF DIRECTOR
Transcript
" I
DEFENSE SECURITY ASSISTANCE AGENCY
. WASHINGTON. D.C. 20301
15 September 1986 .
In reply refer to:· ,", . .,,,_ .... Transmit ta 1 No. 7 DOD 5105. 38-M
MEMORANDUM FOR RECIPIENTS OF· bOD 5l05.38-M, SECURITY ASSISTANCE MANAGEMENT MANUAL (SAMM)
SUBJECT: SAMM Change 7 Transmittal
The attached revised material updates the basic publication.
Make the applicable change to the sAMM in accordance with the attached list of changes by inserting new pages.
This change is effective 15 September 1986.
Attachments 1. List of Changes 2. List of Effective Pages 3. List of material incorporated
within Change 7 4. SAMM Updated pages
ht;1ic ~tt:Z~. GAST "~ LIEUTENANT GENERAL, USAF DIRECTOR
000 5105.38-M
DSAA Approved Pro Rata Nonrecurring Cost (NRC) Date NRC
Recoupment Charge Charge $ Approved
CATEGORY VIII - AIRCRAFT, SPACECRAFT AND ASSOCIATED EQUIPMENT
(with 25mm Cannon) Vehicle, Recovery, M-88 Series (A) Vehicle, AAV7/AAVAI Amphibious Assault (N) Vulcan Air Defense System,
M-163 and M-167 Series (A)
fABLE 7-1-1. (Contlnued)
.( b) . (b)
(b) (a) (b)
33,213.00 688.00
, 688.00 688.00
40,258.00 14,371.00 16,975.00 21,069.00 5~636.00
80,876.00 , (a)
1,479.00 5,521.00
12,849.00 14,083.00 31,427.00 21,939.00
132,162.00 237,048.00
2,066.00 74,715.00
79,392.00
73,678.00
78,355.00
15,089.00 91,426.00 29,439.00
25 Jan 84
11 Sep 78 11 Sep 78 11 Sep 78 26 Mar 80 26 May 80 26 Mar 80 26 Mar 80 26 Mar 80 21 May 79
3 Mar 80 3 Mar 80 3 Mar 80
20 Aug 84 20 Aug 84 3 Mar 80
25 Jun 82
25 Jun 82
25 Jun 82
25 Jun 82
13 Feb 80 20 Apr 82 26 Mar 80
7-23 Change No.7, 15 September 1986
DOD 5105.38-M
LIST OF CHANGES
Remove and insert the following portions/pages of your current SAMM:
REMOVE vii through xx 2-5 through 2-8 2-17 through 2-20 3-1 through 3-2 3-7 through 3-8 4-2.1 through 4-2.2 5-9 through 5-10 6-5 through 6-10 6-13 through 6-18 7-9 through 7-10 7-23 through 7-24 7-29 through 7-30 7 -93 through 7 -96 7-99 through 7-100 7-107 through 7-108 7-111 through 7-112 7-115 through 7-118 7-131 through 7-132 7-135 through 7-136 8-13 through 8-14 8-23 through 8-38 8-55 through 8-60 8-63 through 8-65 9-1 through 9-2 9-15 through 9-18 9-21 through 9-22 9-45 through 9-46 9-79 through 9-80 10-1 through 10-2 10-4.1 through 10-6 10-9 through 10-10 10-13 through 10-22 10-25 through 10-26 10-29 through 10-30 10-37 through 10-40 10-45 through 10-46 10-59 through 10-62 11-3 through 11-4 11-7 through 11-8 12-3 through 12-6 12-11 through 12-12 12-23 through 12-26 13-3 through 13-8 A-1 through A-2 A-5 through A-8 B-15 through B-17 0-33 through 0-34 0-79 through 0-80 E-1 through E-12
INsERT vii through xx 2-5 through 2-8 2-17 through 2-20 3-1 through 3-2 3-7 through 3-8 4-2.1 through 4-2.2 5-9 through 5-10 6-5 through 6-10.2 6-13 through 6-18 7-9 through 7-10 7-23 through 7-24 7-29 through 7-30 7 -93 through 7-96 7-99 through 7-100 7-107 through 7-108 7-111 through 7-112 7-115 through 7-118 7-131 through 7-132 7-135 through 7-136 8-13 through 8-14 8-23 through 8-38 8-55 through 8-60 8-63 through 8-65 9-1 through 9-2 9-15 through 9-18 9-21 through 9-22 9-45 through 9-46 9-79 through 9-80 10-1 through 10-2 10-4.1 through 10-6 10-9 through 10-10 10-13 through 10-22 10-25 through 10-26 10-29 through 10-30 10-37 through 10-40 10-45 through 10-46 10-59 through 10-62 11-3 through 11-4 11-7 through 11-8 12-3 through 12-6 12-11 through 12-12 12-23 through 12-26 13-3 through 13-8 A-1 through A-2 A-5 through A-8 B-15 through B-17 0-33 through 0-34 0-79 through 0-80 E-1 through E-18
Change No.7, 15 September 1986
LIST OF EFFECTIVE PAGES
Chapters ·Page Numbers
000 5105.38-M
Date of Latest Revision
Table of Contents •••••••••••••••• vii through xx ••••••••••••• 15 Sep 86
1 ••••••••••••••••••••••••••••• 1-1 through 1-2 •••••••••••• 1 Apr 84 (Initial) 1-3 through 1-4 •••••••••••• 10 Jan 85 1-5 •••••••••••••••••••••••• 1 Apr 84 (Initial)
2 ••••••••••••••••••••••••••••• 2-1 through 2-2 •••••••••••• 1 Apr 84 (Initial) 2-3 through 2-4 •••••••••••• 1 May 85 2-5 through 2-8 •••••••••••• 15 Sep 86 2-9 through 2-16 ••••••••••• 1 May 85 2-17 through 2-20 •••••••••• 15 Sep 86 2-21 through 2-22 •••••••••• 1 Apr 84 (Initial)
3 .......•.....••.•..•.•..•.•.• 3-1 through 3-2 •...•••....• 15 Sep 86 3-3 through 3-4 •••••••••••• 1 May 85 3-5 through 3-6 •••••••••••• 1 Mar 86 3-7 through 3-8 •••••••••••• 15 Sep 86 3-9 through 3-10 ••••••••••• 1 May 85
4 .•......•....•............... 4-1 through 4-2 •....•...... 1 Mar 86 4-2.1 through 4-2.2 •••••••• 15 Sep 86 4-3 through 4-4 •••••••••••• 1 Apr 84 (Initial) 4-5 through 4-6 •••••••••••• 1 Mar 86
5 ••.••.•...•••••.•........•... 5-1 through 5-8 ....••••.•.• 1 May 85 5-9 through 5-10 ••••••••••• 15 Sep 86 5-11 through 5-20 •••••••••• 1 Mar 86
6 ••••••.•••••••••••••••••••••• 6-1 through 6-2 •••••••••••• 1 Apr 84 (Initial) 6-3 through 6-4 •••••••••••• 1 May 85 6-5 through 6-10.2 ••••••••• 15 Sep 86 6-11 through 6-12 ••••••••••• 1 Mar 86 6-13 through 6-18 •••••••••• 15 Sep 86 6-19 through 6-20 ••••••.•••• 1 Apr 84 (Initial) 6-21 through 6-22 •••••••••• 1 Sep 85 6-23 through 6-24 •••••••••• 1 Mar 86 6-25 through 6-27 •••••••••• 10 Jan 85
7 ••••••••••••••••••••••••••••• 7-1 through 7-2~ ••••••••••• 1 Sep 85 7-2.1 through 7-8 •••••••••• 1 Mar 86 7-9 through 7-10 ••••••••••• 15 Sep 86 7-11 through 7-14 •••••••••• 1 Mar 86 7-15 through 7-22 •••••••••• 1 Sep 85 7-23 through 7-24 •••••• ~ ••• 15 Sep 86 7-25 through 7-28 •••••••••• 1 Sep 85 7-29 through 7-30 •••••••••• 15 Sep 86 7-31 through 7-32 •••••••••• 2 Jan 85 7-33 through 7-34 •••••••••• 1 Sep 85
(Continued on next page.)
Change No.7, 15 September 1986
Chapters Page Numbers
000 5105.38~M
Date of Latest Revision
7 (Continued) •••••••••••••••• 7-35 through 7-40 •••••••••• 2 Jan 85 7-41 through 7-46 •••••••••• 1 Mar 86 7-47 through 7-52 •••••••••• 2 Jan 85 7-53 through 7-54 •••••••••• 1 May 85 7-55 through 7-58 •••••••••• 2 Jan 85 7-59 through 7-60 •••••••••• 1 Mar 86 7-61 through 7-64 •••••••••• 2 Jan 85 7-65 through 7-66 •••••••••• 1 Mar 86 7-67 through 7-68 •••••••••• 2 Jan 85 7-69 through 7-70 •••••••••• 1 Mar 86 7-71 through 7-74 •••••••••• 2 Jan 85 7-75 through 7-78 •••••••••• 1 May 85 7-79 through 7-80 •••••••••• 10 Jan 85 7-81 through 7-86 •••••••••• 2 Jan 85 7-87 through 7-92 •••••••••• 1 Mar 86 7-93 through 7-96 •••••••••• 15 Sep 86 7-97 through 7-98 •••••••••• 1 Mar 86 7-99 through 7-100 ••••••••• 15 Sep 86 7-101 through 7-106 •••••••• 1 Mar 86 7-107 through 7-108 •••••••• 15 Sep 86 7-109 through 7-110 •••••••• 1 Mar 86 7-111 through 7-112 •••••••• 15 Sep 86 7-113 through 7-114 •••••••• 1 Mar 86 7-115 through 7-118 •••••••• 15 Sep 86 7-119 through 7-130 •••••••• 1 Mar 86 7-131 through 7-132 •••••••• 15 Sep 86 7-133 through 7-134 •••••••• 1 Mar 86 7-135 through 7-136 •••••••• 15 Sep 86 7-137 through 7-144 •••••••• 1 Mar 86
8 ••.•••••••••••••••••••...••.. 8-1 through 8-2 ••••••••••• ~ 1 Mar 86 8-3 through 8-4.4 •••••••••• 1 Sep 85 8-5 through 8-6 •••••••••••• 10 Jan 85 8-7 through 8-8 •••••••••••• 1 Sep 85 8-9 through 8-12 ••••••••••• 1 Mar 86 8-13 through 8-14 •••••••••• 15 Sep 86 8-15 through 8-22.~ •••••••• 2 Jan 85 8-23 through 8-38 •••••••••• 15 Sep 86 8-39 through 8-40 •••••••••• 2 Jan 85 8-41 through 8-42 •••••••••• 1 May 85 8-43 through 8-44 •••••••••• 2 Jan 85 8-45 through 8-50 •••••••••• 1 Sep 85 8-51 through 8-54 •••••••••• 1 Mar 86 8-55 through 8-60 •••••••••• 15 Sep 86 8~61 through 8-62 •••••••••• 1 Mar 86 8-63 through 8-65 •••••••••• 15 Sep 86
9 ••••••••••••••••••••••••••••• 9-1 through 9-2 •••••••••••• 15 Sep 86 9-3 through 9-14 ••••••••••• 1 Mar 86 9-15 through 9-18 •••••••••• 15 Sep 86
(Continued on next page.)
Change No.7, 15 September 1986
Chapters
9 (Continued)
Page Numbers
000 5105.38-M
Date of Latest Revision
9-19 through 9-20 •••••••••• 1 Mar 86 9-21 through 9-22 •••••••••• 15 Sep 86 9-23 through 9-44 •••••••••• 1 Mar 86 9-45 through 9-46 •••••••••• 15 Sep 86 9-47 through 9-78 •••••••••• 1 Mar 86 9-79 through 9-80 •••••••••• 15 Sep 86
10 ••••••••••••••••••••••••••••• 10-1 through 10-2 •••••••••• 15 Sep 86 10-3 through 10-4 •••••••••• 1 Mar 86 10-4.1 through 10-6 •••••••• 15 Sep 86 10-7 through 10-8 •••••••••• 1 Sep 85 10-9 through 10-10 ••••••••• 15 Sep 86 10-11 through 10-12 •••••••• 1 Sep 85 10-13 through 10-22 •••••••• 15 Sep 86 10-23 through 10-24 •••••••• 1 Sep 85 10-25 through 10-26 •••••••• 15 Sep 86 10-26.1 through 10-26.2 •••• 1 Mar 86 10-27 through 10-28 •••••••• 1 Sep 85 10-29 through 10-30 •••••••• 15 Sep 86 10-30.1 through 10-30.2 •••• 1 Mar 86 10-31 through 10-36 •••••••• 1 Sep 85 10-37 through 10-40 •••••••• 15 Sep 86 10-41 through 10-44 •••••••• 1 Sep 85 10-45 through 10-46 •• ~ ••••• 15 Sep 86 10-47 through 10-58 •••••••• 1 Sep 85 10-59 through 10-62 •••••••• 15 Sep 86 10-63 through 10-66 •••••••• 1 Sep 85 10-67 through 10-70 •••••••• 1 Mar 86
11 ••••••••••••••••••••••••••••• 11-1 through 11-2.2 •••••••• 1 Mar 86 11-3 through 11-4 •••••••••• 15 Sep 86. 11-5 through 11-6 •••••••••• 2 Jan 85 11-7 through 11-8 •••••••••• 15 Sep 86 11-9 through 11-10 ••••••••• 1 May 85
12 ••••••••••••••••••••••••••••• 12-1 through 12-2 ••••• ; ••• 1 Apr 84 (Initial) 12-3 through 12-6 •••••••••• 15 Sep 86 12-7 through 12-10 ••••••••• 1 Apr 84 (Initial) 12-11 through 12-12 •••••••• 15 Sep 86 , 12-13 through 12-22 •••••••• 1 Apr 84 (Initial) 12-23 through 12-26 •••••••• 15 Sep 86 12-27 through 12-29 •••••••• 1 Apr 84 (Initial)
13 ••••••••••••••••••••••••••••• 13-1 through 13-2 •••••••••• 1 Apr 84 (Initial) 13-3 through 13-8 •••••••••• 15 Sep 86 13-9 through 13-16 ••••••••• 1 Apr 84 (Initial) 13-17 through 13-20 •••••••• 1 Mar 86
14 ••••••••••••••••••••••••••••• 14-1 through 14-8 •••••••••• 2 Jan 85 -14-9 through 14-14 ••••••••• 1 Apr 84 (Initial)
. (Continued on next page.)
Change No.7, 15 September 1986
Chapters
14 (Continued)
Page Numbers
DoD 5105.38-M
Date of Latest Revision
14-15 through 14-16 •••••••• 1 Mar 86 14-16.1 through 14-16.2 ••.• 1 May 85 14-17 through 14-25 ••••.••• 1 Apr 84 (Initial)
, .
15 ••••••••••••••••••••••••.••• 15-1 through 15-72 ••••••••• 1 Apr 84 (Initial) 15-73 through 15-74 •••••••• 1 Mar 86 15-75 through 15-88 •••••••• 1 Apr 84 (Initial)
Appendix A ••••••• ~ •••••• ~ •••••••• A-l through A-2 •••••••••• ~.15 Sep 86 A-3 through A-4 •••••••••••• 1 Mar 86 A-5 through A-8 •••••••••••• 15 Sep 86
Appendix B •.••••••••••••• ~ ••••••• B-l. through B-14 ••••••••••• 1 Apr 84 (Initial) B-15 through B-17 •••••••••• 15 Sep 86
Appendix C ••••••••••••••••••••••• C-l through C-2 •••••••••••• 2 Jan 85 C-3 through C-5 •••••••••••• 1 Apr 84 (Initial)
Appendix 0 ••••••••••••••••••••••• 0-1 through 0-8.2 •••••••••• 1 Mar 86 0-9 through 0-10 ••••••••••• 2 Jan 85 0-11 through 0-12 •••••••••• 1 Mar 86 0-13 through 0-16 •••• ~ ••.•• 2 Jan 85 0-17 through 0-18 •••••••••• 1 Mar 86 0-19 through 0-20 •••••••••• 2 Jan 85 0-21 through 0-22 •••••••••• 1 Mar 86 0-23 through 0-26 •••••••••• 2 Jan 85 0-27 through 0-28 •••••••••• 1 Sep 85 0-29 through 0-30 •••••••••• 2 Jan 85 0-31 through 0-32 ••••••••• ~ 1 Sep 85 0-33 through 0-34 •••••• ~ ••• 15 Sep 86 D-35 through 0-38 •••••••••• 2 Jan 85 0-39 through 0-40 •••••••••• 1 Mar 86 0-41 through 0-78 •••••••••• 2 Jan 85 0-79 through 0-80 ••••••••.• 15 Sep 86 0-81 through 0-84 •••••••••• 2 Jan 85
Appendix E ••••••••••••••••••••••• E-l through E-18 ••••••••••• 15 Sep 86
Index ••••••••••••••••••••• ' ••••••• (alphabetical) ••••••••••••• 1 May 85
Change No.7, 15 September 1986
DOD 5105.38-M
SECURITY ASSISTANCE MANAGEMENT MANUAL (SAMM)
FORMAL CHANGE NO.7 INCLUDES THE FOLLOWING INFORMATION:
INTERIM CHANGES INCORPORATED:
Number Subject
86-08 To Chapter 8, Section V, Figure 8-V-1, Para. J, the following sentence was added: "Amendments exempted from countersignature should contain the following imple -menting agency entry: 'Not Required: SAMM, Chapter 8, Section V, Paragraph A.2. Date Reviewed (Enter Date).'" To Chapter 8, Section V, Figure 8-V-2, Para. I, the following sentence was added: "Modifications exempted from countersignature should contain the following implementing agency entry: 'Not Required: SAMM, Chapter 8, 'Section V, Paragraph CA. Date Reviewed (Enter Date);'" [DSAAI COMPT-FMSCD Msg. 152342Z Aug 86]
86~07 Chapter 7, Section III, Figure 7-III-2, "Contract Administration Reciprocal Agree., ments." Under United Kingdom, insert "United Kingdom, 30 December 1985, Quality Assurance and Inspection." [DSAA/OPS-E Msg. 112038Z Jul 86] r' '
86-06 Chapter 4, Section I, Para. C.3., "Eligible Countries," was revised. [DSAA/OPS-E Msg. 271622 May 86]
86-05 Chapter 12, Figure 12-1-11, "RCS: DSAA(Q)1146," was revised. Section I, Para. G.1., Quarterly Report, was revised to include the words "with a copy to SAAC." [DSANOPS-E Msg. 221508Z May 86]
86-04 Chapter 6, Para. C.6.c., "Withdrawal from U.S. Forces." This paragraph was revised to include the following: "If tanks are being withdrawn, a determination will be included in the required Congressional notification that the proposed sale will not increase the shortage of tanks in the U.S. National Guard or Reserve during the current five-year defense plan. Should tanks need to be withdrawn from the U.S. National Guard or Reserve, the Congress shall be advised of the plan to replace the specific tanks." [DSANOPS-E Msg. 250224Z Apr 86]
MISCELLANEOUS INFORMATION INCORPORATED:
CHAPTER 6:
• Section I, Para. C.5., "Diversions of Materiel," was revised to correct the deficiency in ICR #40, Significant! Adverse Impact DiversionIWithdrawal from Defense Stocks.
• Section I, Para. C.12. The phrases" defense requirement survey" and "defense requirement survey team" were changed to "security assistance survey" and "security assistance survey team."
• Section I, Table 6-1-1, "Foreign Countries and International Organizations Eligible to Purchase Defense Articles and Defense Services under the Authority of the AECA," was revised
Change No.7, 15 September 1986
DOD 5105.38-M
as follows. Dahomey was changed to Benin; Upper Volta was changed to Burkina Faso and Cape· Verde, Chad,. Guinea-Bissau, Mali, and Mauritania were added. A few other typographical corrections were made also.
• Section I, Tables 6-1-2 and 6-1-3: "Defense Requirement Survey Team" was changed to "Security Assistance Survey Team."
CHAPTER 7:
• . In several places "concurrent resolution" was changed to "joint resolution."
• Section I, Para. C.4.(2), "Limitation of Cost or Funds." The reference to the "DAR" was changed/updated to ~.'FAR."
• Section I, Table 7-1-1, "MDE List. " Under Category VIII - Aircraft, Spacecraft, and Associ -ated Equipment, the nonrecurring cost recoupment charge for a C-130 (AF) was changed from $103,520.00 to $102,520.00.
• Section III, Para. M.2.b.(10), "Administrative and Accessorial Charges." The second sentence was changed to read: "However, one half (50%) of the administrative fee reflected in block 23 of the DD Form 1513 will normally be required with acceptance of the LOA."
• Section N, Para. B.2.d., "Congressional Objection to a Proposed Sale," was deleted.
CHAPTER 8:
• In Section III, a new paragraph F.3.g. entitled II Controlled Substances" was added. I
• In Section III,Table 8-111-2, "Potential Sources for Listing of Freight Forwarders," the Civil Aeronautics Board address was deleted ..
• Section V, Para. C.5., "Price Changes During Case Closure," was rewritten as follows: "Price increases or decreases discovered· during case closure will be assessed the country during final billing if a closure certificate can be provided to the SAAC within six months of the supply completion date. When case closure certification will take more than six months from the supply completion date and the estimated final cost is expected to vary (increase or decrease) from the current case value by $500,000 or 10% (whichever is less) a DD Form 1513-2 adjusting the case value is required."
CHAPTER 9:
• In Section III, Para. J.2., "OSP Determinations," the following sentence was added: "DODD . 2125.1 outlines OSP [Offshore Procurement] procedures when Military Assistance Program (MAP) funds are involved."
• .. Section III, Para. K.4. Concerning repayments overdue, the words "one year or more" were changed to "more than one year." The portion of this same paragraph which dealt with the Brooke Amendment was revised extensively and now lists specific sanctions.
CHAPTER 10:
• In Section I, Para. A.3., "Scope of Program," the following sentence was added: "For pro -gramming purposes, Hawaii is considered to be an overseas location.
Change No.7, 15 September 1986
DOD 5105.38-M
• In Section I, Para. D.1.n., "Repetitive Training," the following phrase was added: "to include formal classroom training following MTI instruction in the same subject materiaL" .
• Section I, under Para. E, "Training Guidance," two new paragraphs (1 and 2) were added covering the following subjects: training planning and Joint Service Training Planning Work -shops (objectives, format, attendance, SAO two-year training plans and presentations, SAO requests for exception to policy, and MILDEP presentations).
• In Section I, a new Para. E.15., "Foreign Military Trainee Positions of Prominence and· Influence Reporting," was added. This information was initially addressed in DSAN COMPTITMD Msg. 232357Z May 86.
• Section I, Para. K.5., "Mid-Year Review of IMET Allocation Levels," the last part of the paragraph was revised as follows: "Recommendations for increases [in IMET alloc~tion levels] will be prioritized within each Unified Command and will include a descriptive narrative to identify the type of training and number of students associated with the dollars requested. Specific WCN numbers should be identified."
• Section I, Para. M.2.b.(2)(a), "Foreign Guest Instructors (Panama Canal Area Military Schools)," was deleted.
• Section II, Table ID-IT-2, "Table of Daily Supplemental Living Allowances for IMET Foreign Military Trainees," was revised reflecting new rates. This information was initially addressed in DSAA/COMPTITMD Msg. 211446 Jan 86.
CHAPTER 11:
• lit several instances, Defense Property Disposal Service (DPDS) was changed to Defense Reutilization and Marketing Service (DRMS) and Defense Property Disposal Office (DPDO) was changed to Defense Reutilization and Marketing Office (DRMO).
• In Section IT, Para. F.1., "Legislative Requirements," the following sentence was added to the end of paragraph a.: "In the case of items which were delivered prior to 1975, the . President may waive the requirement that such net proceeds be paid to the United States, Government if he determines that to do so is in the national interest of the United States."
CHAPTER 12: In several places" concurrent resolution" was changed to ''joint resolution". .
CHAPTER 13: In Section I, Para. C.1.b.(d), "Base Operating Support Costs," and C.1.b.(e), "Dedicated Security Assistance Activities," were rewritten.
APPENDIX A: • ASD(MI&L), Assistant Secretary of Defense (Manpower, Installations and Logistics), was.
changed to ASD(A&L), Assistant Secretary of Defense (Acquisition and Logistics). • DA V A, Defense Audiovisual Agency, was deleted • NICSMA, NATO Integrated Communications System Management Agency, was changed to
NACISA, NATO Communications and Information Systems Agency. • SCE, Significant Combat Equipment, was deleted. • SME, Significant Military Equipment, was added.
APPENDIX B: Significant Combat Equipment (SCE) was changed to Significant Military Equipment (SME).
Change No.7, 15 September 1986
DOD 5105.38-M
APPENDIX D:
• On page 6 of Table D-5, "Country/Activity Code - Alphabetic," the reference "NATO Integrated Communications System Management Agency (NICSMA)" was changed to "NATO Communications and Information Systems Agency (NACISA)."
• Table D-11, "Type of Assistance Code - 1000 System." At the bottom of this table, the reference to Type of Assistance Codes used in other than Grand Aid transactions and Type of Assistance Code "F" and its meaning were deleted. . " "
APPENDIX E:
• The title of Appendix E was changed to "Congressional Reports Inventory and DSAA Reports Control System."
• Para. A., Purpose, was rewritten.
• Para. B. heading--"Reports Inventory"--was changed to "Congressional Reports Inventory."
• A new Para. C, "DSAA Reports Control System," was added.
• Figure E-2, "Report of EDA Sold under FMS" -- in two places the word month was changed to quarter.
• Added new Figure E-4 and E-5 (front and back to DSAA Reports Control form).
• A comp~ete new Table E-l, "Statutory Reports to Congress Submitted by DOD on Security Assistance," and Table E-2, "Current Reporting Requirements under DSAA Reports Control
, System," are provided. .
N..Qk: In addition, minor administrative corrections werefuade on various pages, and other pages are included due to repagination.
Change No.7, 15 September 1986
T ABLE OF CONTENTS
LETTER OF TRANSMITTAL FOREWORD RECORD ·OF TRANSMITTALS TA~LE OF CONTENTS
CHAPTER 1 - INTRODUCTION TO SECURITY ASSISTANCE
Section I - Manual Purpose and Structure Purpose Organization Chapter Identification System Applicabil ity Objectives Basic Issues and Changes Distribution
A. B. C. D. E. F. G. H. I.
Interpretation, Recommendations and Deviations Effective Date and Implementation
Section· II - Rationale and Scope· A. Purpose B. Rationale for Security Assistance Program C. Security Assistance Scope D. Implementation
CHAPTER 2 - MAJOR STATUTORY AND POLICY PROVISIONS
Section I - General A. Purpose B. Background
Section II - Grant Aid A. Genera 1 B. Military Assistance (MAP) C. Training (IMET)
DoD 5105.38-M
PAGE -- I
;
iii v
vi i
1-1
1~1
1-1 1-1 1-1 1-2 1-2 .1~2
1-2 1-3 1-3
1-3 1-3 1-3 1-4 1-5
2-1
2-1 2-1 2..,1
2-2 2-2 2-2 2-2
Section III - Foreign Military Sales (FMS) 2-2 A. Legislative Authority for FMS 2-2 B. Pol icies 2-4
Table 2-111-1 - Part 121-The United States Munitions List 2-8
Section IV - Special Provisions 2-18 A. Constraints on Eligibility 2-18 B. Ship Transfers 2-20 C. Suspensions and Cancellations of Security Assistance 2-21
vii Change No.7, 15 September 1986
000 5105.38-M
CHAPTER 3 - RESPONSIBILITIES AND RELATIONSHIPS
Section I - Resronsibilities A.· Genera B. The Department of Defense Figure 3-1-1 - Decision Channels for Security Assistance Table 3-1-1 - SAO Program Management and
Oversight Functions
Section II - Relationships A. Channels of Communications B. Directives and Record Communications
CHAPTER 4 - SECURITY ASSISTANCE PLANNING
Section I - General A~ Purpose and Scope B. Basic Policies C. Materiel Requirements Surveys
Section II - Planning Dimensions A. Planning tonsideratlons B.U.S. Government Planning Approach. Figure 4-11-1 - Security Assistance Communities Figure 4-11-2 - Community Interrelationships Figure 4-11-3 - Budget and Sales Process
CHAPTER 5 - TECHNOLOGY TRANSFER AND CONTROLS
Section I - Transfer of Technology A. Purpose B. Definitions C. Policy
Section II - Disclosure of Classified ~li1itary Information to Foreign Governments and International Organizations
A. Purpose B. Policy C. Disclosure Authorities D. Responsibilities E. Disclosure Decisions F. False Impressions G. Control of Foreign Representatives H. Industrial Security I. Defense Industrial Security Clearance Office (DISCO) J. User Agency Contracts Requiring Overseas Deliveries K. Transmission of Classified Materiel L. U.S. Contract to Foreign Firms
Section III - Security Classification and Release of Information
A. Purpose B. Security Classification Guidelines C. Release of Information D. ReS: DSAA (AR) 1200 FMS Report Submission E. Foreign Country Involvement in the DOD Contractual
Process
Section IV - Exeort License and Customs Clearance Guidance For Forei~n Mil,tary Sales Customers
A. urpose, ' B. USDOD Sponsored Shipments of FMS Materiel C. Shipments of Unclassified FMS Purchased Materiel
through Country Representatives or Freight Forwarders D. FMS Customer Responsibility E. Procedures for Repai r and Return " F. State Department Approval of Proposals Relating to SME G. Procedures for the Export of Classified Defense
Articles and Services H. FMS Credit Financed Direct Commercial Contracts
Figure 5-IV-l - "Authority to Export Defense Articles and Defense Services Sold under the foreign Military Sales Program (Form DSP-94)
Figure 5-IV-2 - "Application/License for Temporary Import of Unclassified Defense Articles" (Form DSP-61)
Figure 5-IV-3 - "Application/License for Permanent/ Temporary Export or Temporary Import of Classified Defense Articles and Related Classified Technical Data" (Form DSP-85)
CHAPTER 6 - MILITARY EXPORT SALES POLICIES AND CONSIDERATIONS
Section I - ~6'i~y'andBackg~ouri~ A. Purpose B. Background C. Policies
Table 6-1-1 - Foreign Countries and International Organizations Eligible to Purchase Defense Articles and Defense Services Under the Authority of the AECA
PAGE
5-6 5-6 5-7 5-9 5-11
5-12
5-13 5-13 5-13
5-14 . 5-15 ~-16 5-17
5-17 5-17
5-18
5-19
, '
5-20
6-1
'6~1
6-1 6-1 6-5
6-15 * Table 6-1-2 - General Terms of Reference for Security
portqtion and Services Table 7-11-6 - Additional Terms and Conditions, Safe
guards for Contractor Personnel
Section III - Financial Principles and Procedures Purpose Responsibilities and Requirements ~asic Princip1es Pricing of FMS Transactions Direct Charges to FMS Cases Government-Provided Engin~ering Services
A. B. C. D. E. F. G. H. I. J.
Asset Us~ Charges for Items Provided fro~ Inventory Replacement Price for Secondary Items Financial Administration of FMS Creqit Program Preparation and Implementation of DO Form 1513, Letters of Offer and Acceptance '(LO~)
K. Terms of Sale and Type of· Assistance Codes (Refer to Table 7-111-1) , .
L. Multiple Sources of Financing M. Financial Control of FMS Agreements
Figure 7-111-1 - Key Dates in FMS Billing and Collection Figure 7-111-2 - Contract Administration Reciprocal
Financial Terms and Conditions Table 7-111-1 - Summary of Terms of Sale and Type of
Assistance Codes Table 7-111-2 - Foreign Countries and International
Organizations Authorized Direct ' Authorities for Dependable Undertaking
Section IV - Con~ressional Section 36(b) Notifications and Reports and Sectlonl33b Reports of Foreign MiHtarySales
A. Purpose . B. Statutory Provision, Executive Requirements, and
Exce~tions . . . C. Criteria and Responsibilities for Congressional
Submissions D. Procedures E. Classification
Figure 7-IV-l - Milestones for LOA Requests Figure 7-IV-2 - Milestones for LOA Requests Table 7-IV-l - Advance Notification Data Table 7-IV-2 - Military Justification Data Table 7-IV-3 - Statutory Notification Data
for SME for Non-SME
PAGE
7-60 7-65
7-66
7-67 ,
7-68
7-73 7-73 7-73 7-74 7-75 7-83 1~85 7-86 7-87 7-87
7-87
7-88 7-92 7-92
7-98
7-99 .
7-100
7-102 ,", ,
7-105
7-106 7 .. 106
7,.106
7-113 7-115 7-118
7-120 7-121 7-122 7-125 7-126
xi Change No.7, 15 September 1986
DoD 5105.38-M
Table 7-IV-4A - Sensitivity of Technology Data Table 7-IV-4B Enhancement or Upgrade of Sensitivlty of
Technology of Items Planned to be Delivered, Section 36(b)(5)(A) Report
Table 7-IV-4C -.Statutory Notification Data on Enhance-ment or Upgrade of Capability or Sensitivity of Technology
Table 7-IV-5~'Impact on Current Readiness Report Data Table 7-IV-6 - Transmittal Letter for the Unsigned LOA
Section A. B.
v - Case Management The Scope of Case Management Case Management Authority, Responsibility, Accountability, and.Control
C. Reporting Requirements -D. The Case 'Manager's Role in'the Assignment of Tasks E. Performance Specifications and Measurement
Standards F. Formal Training to Meet Special Requirements
of the Case Ma~ager
Figure 7-V-l - Charter for Case Manager Table 7~V-l - Case Manager Data Elements
CHAPTER 8 - FMS CASE PERFORMANCE
Section I - Case Implementation and Execution A. Implementation B. Execution
Section II - ACquisition for FMS.· A. DoD Regulations and Procedures B. FMS'Customer Requests for Specific Source C. Sales Commissions and Agents Fees D. Appointment of a~ Agent
PAGE
7-129
7-131 *
7-132 7-135 7-134
7-136 7-136
7-136 7-139 7-140
7-140
7-140
7-142 7-143
8-1
8-1 8-1 8-2
8-3 8-3 8-4 8-5 8-7
Section III - Logistics 8-9 A. Follow-on Support 8-9 B. Requisition Procedures 8-13 C. Management Review . . 8-15 D. Adherence to Stated Conditions 8-16 E. System Support Buy Out 8-16 F. Transportation of FMS Materiel 8-17
Table 8-111-1 - Foreign Countries and International Organizations Authorized Receipt of DLA Excess Property L i sti ngs 8-37
Table 8-III-2 - Potential' Sources for Listings of Freight Forwarders 8-38
xii Change No.7, 15 September 1986
DoD 5105.38-M
PAGE
Table 8-111-3 -,Financing Reports of Discrepancy When the USG is Liable 8-39
. B. C. D. E. F.
G.
Section
the
v - Amendments and Modifications A. B. C.
DO Form 1513-1 - Amendment to Offer and Acceptance Pen-and-Ink Changes - DD Forms 1513 and 1513-1 DD Form 1513-2 - Notice of Modification of Offer and Acceptance
Figure 8-V-1
Figure 8-V-2
- United States Department of Defense Amendment to Offer and Acceptance (DD Form 1513)
- United States Department of Defense Notice of Modification of Offer and Acceptance (DD Form 1513-2)
CHAPTER 9 - FMS DIRECT CREDIT AND GUARANTEED LOAN FINANCING
Section I - General A. Purpose B. Introduction C. Arms Export Control Act (AECA) Authorization D. Additional Provisions of the Act
Section A. B. C. D.
II - Eligibility Need for Financing Use of Financing for Essential Denial of FMS Credit Exceptions
Section III - Process and Procedures
A. General
Items
B. Congressional Authorization and Appropriatior C. Apportionment D. Implementation and Management of Loans E. Issuance of FMS Loans F. Approval of FMS Credit-Fi~anced Purchases G. Commitment of FMS Credit Funds H. Disbursement of FMS Loan Funds I. Direct Commercial Purchases
8-45 8-45 8-47 8-48 8-48 8-49
8-49 8-50
8-51 8-51 8-53
8-54
8-57
8-61 ',"
9-1
9'~l 9-1 9-1 9-1 9-2
9-3 9-4 9-4
'9-4 9'-5
9-6
9-6 9-6 9-6 9-6 9-7 9-8 9-8 9-9 9-10
xiii Change No.7, 15 September 1986
DoD 5105.38-M
'.
J. Offshore Procurement (OSP) K. Repayment of FMS Loans
Table 9-111-1 - DoD Guaranteed Loan Agreement Issued by the FFB
Table 9-111-2 - Guaranty Table 9-111-3 ~ Loan Agreement Table 9-111-4 - DSAA Sample Letter to Purchasing Country
Approving Use of FMS Loan Financing for'Direct Commercial Purchases
Table 9-111-5 - DSAA Sample Letter to Supplier Approving Use of FMS Loan Financing for Direct Commercial Purchases
Table 9~11l-6 - Essential Contract Elements Table 9-111-7 - Contractor'sCertification and Agreement
with Defense Security Assistance Agency Table 9-111-8 - Notification of Requirements for Direct
Acquisition to be Funded with U.S. FMS Loan', Funds
'Section IV -'Transportation A. Genera' B. Marine Transportation Waiver Procedures C. Reports to U.S. Department of Transportation
CHAPTER 10 - TRAINING PROGRAM MANAGEMENT
, 'Section (IMET)
A. B. C. D. Eo F. G. H. I. J. K. L. M.
f " N. O.
I - International Military Education and Training
Introduction Areas of Principal Emphasis Objectives of IMET
,Constraints and DSAA Approval Tr~t~ing Guidance ' General Guidance Concerning Students Extraordinary Expenses Other Training Support Training Materials Political Asylum and Temporary Refuge Program Management Program Development and Submission IMET Programming Instructions Implementation Training Annual Integrated Assessment of Security Assistance (AIASA) Reports
Section II - Foreign Military Sales Training A. Purpose
: B. Basic Guidelines C. English Language Training D. FMS Training Tuition Rates
PAGE
9-16 9-16
9-18 9-40 9-42
9-68
9-69 9-71
9-72
9-76
9-77 9-77 9-77 9-80
10-1
10-1
10-1 10-1 10-2 10-2 10-5 10-19.1 * 10-26
'10-27 10-28 10-28 10-28 10-30 10-35 10-40
10-44
10-45 10-45 10-45 10-49 10-50
, _ oc' ~.
,i. xiv Change No.7, 15 September 1986
000 5105.38-M
PAGE
E. Cancellation of Training-Penalty Charge 10-50 F. Training at Civilian Institutions or by Contractor 10-50 G. Transportation and Travel 10-51 H.Living Allowances/Privileges 10-51 I. Training of Civilians under FMS 10-52 J. FMS Orientation Training Courses and Visits 10-52 K. Mobile Training Teams and Field Training Services 10-52 L. Training Relations 10-52 M. Restrictions of Transfer of Training 10-52 N. Police, Intelligence, and Other Sensitive Training 10-53 O. Security Assistance Management Training 10~53
Figure 10-11-1 - Invitational Travel Order (ITO) for Foreign Military Trainees (FMT) (DO Form 2285)·
Table 1O-II-1 - Program Card Formats Table 10-11-2 - Table of Daily Supplemental Living
Allowances for IMET Foreign Military Trainees (FMTs)
Section III - Reciprocal Exchange Training A. Purpose B. Professional Military Education (PME) Exchange
Training C. Unit Exchange Training and Related Support D. Reports .
CHAPTER 11 - MILITARY ASSISTANCE PROGRAM (MAP)
n Militar Sales
Section II - Utilization, Redistribution and Disposal of MAp Materiel
A. Purpose B. Legal Limitations C. Supervision of End-item Use and
Maintenance of Inventories D. Transfer of MAP Excess Materiel E. Cannibalization and Retention of MAP Property F. Disposal of MAP Property
Section III - Section 506 Special Authority A. Purpose B. Section 506(a) C. Section 506(b) D. Section 506(c)
10-54 10-58
10-60 '10..;62 10-67
10-70
10.,.70,: 10-70 10:"70
11-1
11-1 11-1
11-2.2 11-2.2 11-3
11-3 11-5 11-6 11-6
11-8 11-8 11-8 11-9 11-10
*
xv Change No.7, 15 September 1986
000 5105.38-M
PAGE
CHAPTER 12 - LEASES AND LOANS OF DEFENSE ARTICLES 12-1
Section I - Leases 12-1 A. Authority and Purpose 12-1 B. Lease Terms and Conditions 12-2 C. Coordination 12-4 D. Congr~ssional Notification 12-4 E. Financial Arrangements 12-6 F. Lease Closure 12-6 G. Reporting 12-6 H. U.S. Navy Ships 12-7
Figure 12-1-1 - Determination Regarding the Lease of Article(s) to Countries or International Organizations Pursuant to the Arms Export Control Act, Chapter 6 12-8
Figure 12-1-2 - Memo for the Director, DSAA; Subject: Lease under Chapter 6, AECA 12-9
Figure 12-1-3 - Sample Lease 12-10 Figure 12-1-4 - Memo for the Director for Operations,
DSAA; Subject: Congressional Certifica-tion under Chapter 6, AECA 12-17
Figure 12-1-5 - Transmittal - Notice of Proposed Lease Pursuant to the AECA, Section 62 12~18
Figure 12-1-6 - Letter to the Honorable Speaker of the House of Representatives 12-19
Figure 12-1-7 - Letter to the Honorable Chairman, Committee on Forei gn Re 1 ati ons . 12-20
Figure 12-1-8 - Letter to the Honorable Chairman,_ Committee on Armed Services 12-21
Fi gure 12-1-9 - Letter to the Prospective Lessee Advising Lessee of Congressional Notification of a Lease for Over One Year 12-22
Figure 12-I~10 - Letter Advising Lessee of Congressional Notification of Lease for MOE for Over One Year 12-23
Figure 12-1-11 - RCS: DSAA(Q)1146 12-24 Figure 12-1-12 - Certificate of Delivery 12-26 Figure 12-1-13 - Lease Closure Information 12":27
Section A. B. C.
II - Loans of Defense Articles Authorl ty and Purpose Reporting Requirements Implementing Loan Documents
CHAPTER 13 - SECURITY ASSISTANCE PROGRAM ADMINISTRATION
Section I - Security Assistance Budgets A. . Purpose B. Financial Resources
12-28 12-28 12-29 12-29
13-1
13-1 13-1 13 ... 1
xvi Change No.7, 15 September 1986
C. Operation of the FMS Administrative and MAP Administrative Overhead and Support and SAO Budget Systems
Table 13-1-1 - MAP/MAAG Budget Reports, Instructions and Sample Format
Section II - Audits and Inspections A. Purpose B. Types of Audits/Inspections C. Notification of Audits and Inspections D. Policy Concerning Releasability of DoD Records
Relating to MAP and FMS E. Relationship with Audit/Inspection Agency F. Exit Conference G. Action on GAO Draft Reports H. Action on GAO Final Reports I. Action on DoD-IG Reports J. Corrective Action Follow-up
Section III - DSAA Financial Management Review Program A. Background B. Purpose C. Procedu res
DoD 5105.38-M
PAGE
13,:",2
13-10
13-12
13-13 13-13 13-13 13-13
13-13 13-15 13-15 13-15 13-15 13-16 13-16 *
13-17 13-17 13-17 13-17
Figure 13-111-1 - Sources of Data for RCN 1150 13-19 Figure 13-111-2 - Sample Tasking Letter for DSAA RCN 1150 13-20
CHAPTER 14 - SPECIAL PROGRAMS AND ACTIVITIES 14-1
Section I - Special Defense Acquisition Fund (SDAF) A •. Authority and Purpose B. Management C. Funding D. Operating Concepts E. Criteria for Procurement. F. Program Implementation G. FMS Sales of SDAF Items H. Equipment Loans I. Transfers Financed by MAP Funds J. Report i ng K. Administrative Expenses
Figure 14-1-1 - Defense Security Assistance Agency Special Defense Acquisition Fund -Loan Agreement
Figure 14-1-2 - Defense Security Assistance Agency Special Defense AcquiSition Fund -Inventory Report
Section II - Foreign Manufacture of U.S. Defense Equipment A. Purpose .
14-12 14-12
B. Background and Scope 14-12 C. Authority to Negotiate and Sign International
Agreements 14-13 D. Principles Regarding Coproduction Policy 14-14 E. NATO Cooperative Projects Under the AECA, Section 27 14-16 F. ~equests for Offset Procurement 14-17 G. Release of Technical Data 14-17
CH~PTER 15 - DSAA MANAGEMENT INFORMATION SYSTEMS 15-1
vervlew, Ul ance, an 15-1 A. Purpose 15-1 B. Description of the Foreign Military and Construction
Sales. Info~mation System 15-1 C •.. Reporting Frequency 15-3 D. D~ta Base Updates 15-3 E. Pteparation and Submission of Data Input for the
DSAA 1200 System 15-3
Table 15-1-1 - Letter of Request Format - Transaction Type SI
Table 15-1-2 ~ Congressional Transaction Format - Transaction Type S2
Table 15-1-3 - DD Form 1513 Format - Transaction Type S3 Table 15-1-4 - Implementing Agency Format - Transaction
Type S4· . Table 15-1-5 - Redesignating Key Format - Transaction
Type S5 Table 15-1-6 - Under DoD Preparation Format (Add/Change/
Delete) - Transaction Type S6 Table 15-1-7 - Under DoD Preparation Format (Change) -
Transaction Type S7
II - DSAA1200 Forei n Militar Sales (FMS S stem
15-5
15-8 15-11
15-15
15-17
15-18
15-20
ro uc s 15-22 -"""-----P-u r-p-o-se 15 - 22
Sciurce of Output Reports 15-22 Categories of DSAA 1200 System Output Reports 15-22 Requests for DSAA 1200 System Output Reports 15-22 DSAA 1200 System Output Reports 15-22 Abbreviated Titles Used in DSAA 1200 System Output Products/Reports 15-26
Figure 15-11-1 - FMS Item Delivery Status Figure 15-11-2 - FMS Item Purchases by NSN Figure 15-11-3 - FMS Summary of Purchases Figure 15-11-4 - FMS Selected Item Summary
15-27 15-28 15-29 15-30
xviii Change No.7, 15 September 1986
000 5105.38-M
Figure 15-11-5 - FMS Status of Purchases and Deliveries Figure 15-11-6 - FMS Fiscal Year ~ctivity Figure 15-11-7 - FMS Case Listing Figure 15-11-8 - FMS Case Milestone Dates and Their
Case Dates Figure 15-II-10 - FMS Case Level Summary" Table 15-11-1 - Sample Request Form Table 15-11-2 - Abbreviated Titles Used in the DSAA 1200
System Output Reports Table 15-11-3 - Sort and Select ,Options for Item Detail
Level and Item Detail Summarized to Category Reports
Table 15-11-4 - Sort and Select Options for Case and' Summary Management Reports
Section III -DSAA 1000 Materiel and Training System Overvjew, 'Data Submission Instructions and Output Products
A. Purpose B. Description of the DSAA 1000 Materiel and Training
Program System ' C. DSAA 1000 System Output Reports D. Preparation and Submission of Data Input for the
DSAA 1000 System
Figure 15-111-1 - Program Originator MAP Order - Materiel Figure 15-111-2 - Program Originator IMET Order - Training Figure 15-111-3 - Grant Aid Detail Listing - Materiel Figure 15-111-4 - IMET Detail Listing - Training Figure 15-111-5 - Grant Aid Summary of Programs Figure 15-111-6 - Student Count by Type and Program Year Figure 15-111-7 - Training Summary by Implementing
Agency and Generic Code Table 15-111-1 - Sort and Select Options (DSAA 1000
System) Table 15-111-2 - Abbreviated Titles Used in the DSAA
1000 System Output Products
Section IV vervlew, Ul ance,
Output Products A. Purpose B. General C. MASL Content D. MASL Relationship to DSAA Program Data E. MASL Distribution F. Inquiries on MASL Content G. MASL Data Submission H. Data Submission Instructions and Formats
Figure 15-IV-1 - Materiel ·MASL Figure 15-IV-2 - Training MASL (IMET) Figure 15-IV-3 - Training MASL (FMS-NATO) Figure 15-IV-4 - Training MASL (FMS/IMET) Figure 15-IV-5 - Training MASL (FMS) Figure 15-IV-6 - Card 1 and 2 Formats·
. Table 15-IV-1 - Abbreviated Titles Used in the MASL Output'Reports
APPENDIX A - ABBREVIATIONS AND ACRONYMS
APPENDIX B - GLOSSARY OF SELECTED TERMS
APPEND I X C- DOD D I RECTI VES, I NSTRUCTI ONS, AND MANUALS
APPENDIX D - DSAA INFORMATION.SYSTEMS DATA ELEMENT DICTIONARY Table D-1 - Action Code - 1000 System Table,. D-2 .. - Commitment Code - lOOP System TableD-3 - Condition Code - 1000 System Table D~4- Cost Code - 1000 System Table. D-5 ..., Country/Activity Code - Alphabetic. TableD~6 - Footnote Code - MASL .T~bleO-7- Generic Codes - All Systems Table D-8 - MAP Element Code - 1000 System
· Table D-9 - Source of Supply Code - 1000 System Table D-10..., Status Code - 1200 System Table D~ll - Type of Assistance Code - 1000 Syst~m Table D-12 - .Unit .of Issue Code - All Systems
APPENDIX E - CONGRESSIONAL REPORTS INVENTORY AND DSAA REPORTS CONTROL SYSTEM .
· A. .Purpose ,B. C,ongressional Reports Inventory
· C.. '. Reporting Instructions
Figure E-1 - Price and Availabil ity Report (RCS: OSAA(Q) 113~) Figure E-2 - Report of EDA Sold Under Foreign ~1ilitary Sales Figure E-3 - Foreign Military Construction Sales Figure E-4- DSAA Reports Control System
· Figure E~5- Instructions for Preparation of DSAA Reports Control Form
.. Table E-1 - Statutory Reports to Congress Submitted by DoD .on Security Assistance
. '. Tab] e E-2 - Cu rrent Report; ng Requ i rements under DSAA Reports Control System
b. Construction Sales (FMCS. In addition to sa 1 es of defense 1 tems an e ense serVl ces, t e epartment of Defense may sell design and construction services to eligible foreign countries or international organizations (AECA, Sec. 29). Such sales are treated as a separate category from FMS, but as AECA sales.
c. Proper Use of Materiel. Consistent with its resources and the situation prevailing in country, the designated U.S. SAO is responsible for supervising and reporting on the utilization by the foreign country of defense articles and services acquired through FMS or leased to the recipient by the DoD.
d. Diversion of Materiel. DoD policy calls for a determination to be made that sale of a defense ltem will not degrade U.S. defense efforts.by taking needed equipment from U.S. stocks (withdrawals), or by disrupting deliveries of critical items from production for U.S. forces (diversions), unless security or foreign policy requirements are such that sale of the item is in the overall U.S. national interest.
e. Insurance. Purchasers will self-insure FMS shipments or obtain commercial insurance without any right of subrogation of any claim against the United States. In extraordinary situations, and upon specific request by the purchaser and receipt of written authorization from the purchaser for the designated departmental procurement activity to act as the agent of the purchaser to obtain pricing quotes and, if necessary, procure the insurance required, insurance may be obtained by the military department concerned and billed as a separate line item on DD Form 1513. For FMS cases already implemented, authorized insurance coverage can be added by amendment. Whenever a military department does provide these services to a purchasing country or organization, it should obtain insurance from a U.S. insurance firm if possible, and in any event it should point out that this is an exceptional arrangement, and should encourage and assist the purchaser to make its own arrangements for insurance for subsequent cases.
f. Del ivery Commitments. The availabil ity data set forth in FMS cases which have been properly accepted and funded by the purchasing country or international organization constitute commitments by the U.S. Fulfillment of these commitments is an important measure of the good faith of the U.S. in dealing with its friends and allies. Accordingly, all DoD components shall assure that FMS del ivery commitments are fully coordinated, and that the material conforms to the standards on the LOA, and can be delivered in the agreed time period. Cases wher~ proposed sales involve the delivery of major equipment which is in relatively short supply, or in less than procurement lead time, or which the military departments determine to be in conflict with U.S. requirements, shall be referred promptly to the DSAA. In this matter, early awareness of foreign requirements which generate production/del ivery conflicts will enable the DoD to establish the most favorably attainable delivery schedule.
g. Materiel Standards. It is DoD policy that defense articles offered and sold to forelgn governments and international organizations should reflect favorably upon the 'United States. Therefore, defense articles offered and sold under FMS will normally be new or unused, or as a result of rehabilitation, possess original appearance insofar as possible, and, as a minimum,
2-5 Change No.7, 15 September 1986
DoD-5105.38-M
have serviceability 'standards prescribed for issue to U.S. forces. If the customer country desires exclusively new end items of equipment, this requirement will be stated in the LOA. If the customer desires to purchase lias is/ where is," this will also be stated in the LOA.
h. Procurement in Foreign Countries. Unless dictated by overrid-ing logistics considerations approved by the Secretary of Defense, the 000 will not enter into sales arrangements which entail commitments for 000 procurement in foreign countries.
3. Financial Management.
a. Recovery of Cost. The FMS' program must be managed at no cost to the U.S. Government (with certain exceptions specifically covered by law), while insuring prompt and complete service to the customer. This requires a thorough understanding of procedures for pricing items or services furnished, administering FMS cases, and reporting of deliveries of materiel or services. The LOA agreement makes it mandatory for the purchaser to pay for the full value of the transaction, regardless of terms of sale specified for the individual Case.
b. Pa~ment in U.S. Dollars. Sales may be made under FMS only if the eligible pure aser agrees to pay in U.S. dollars (AECA, Secs. 21 and 22). Payment in kind (barter) is authorized by Section 21(h) AECA under the limited circumstances specified therein.
c. Credits.
(1) Use of Credit for Essential Items. Credit and credit guaranties under the AECA will be used only to assist countries in acquiring essential .items which cannot reasonably be financed by other means and normally'will be used only to finance investment requirements.
.. (2) Use of Concessionary Credit Terms. Concessionary credit terms (i .e., interest rates less than cost of money to the U.S. Government) will be granted only when determined by the President (Sec. 23, AECA).
(3) Repayment of Credit. FMS credits must be repaid in U.S. dollars within 12 years after the loan agreement has been signed on behalf of the U.S. Government (Sec. 23, AECA) , unless otherwise provided for by U.S. law.
(4) Use of Credit Payments. Cash recei ved frOin FMS and from repayments of FMS credits shall not be used for financing new credits or guaranties. (Sec. 37, AECA).
d. Financing of Sales.
(1) U.S. Guaranties. Financing by any individual, corporation, partnership, or other Judicial entity doing business in the U.S. (excluding U.S. government agencies other than the Federal Financing Bank) may be guaranteed by the U.S. Government if such financing is in connection with FMS
2-6 Change No.7, 15 September 1986
*
* *
DoD-5105.38-M
or FMCS or direct commercial sales of defense items. Fees shall, be charged for such guaranties. (Sec. 24, AECA)
(2) Export-Import Bank. Export-Import Bank financing of sales of defense items to economlcally less developed countries is prohibited. (Sec. 32, AECA).
2-7 Change No.7, 15 September 1986
DoD-5105.38-M
TABLE 2-111-1 PART 121 THE UNITED STATES MUNITIONS LIST
[Extracted from the International Traffic in Arms Regulations (ITAR), printed in the Federal Re~ister, Vol. 49, No. 236, December 6, 1984, Rules and Regula-tions, pages 4768 through 47712.] *
PART 121-THE UNITED STATES MUNlnoNS UST
EnumeratioD of ArtIdes
Sec. 121.1 General. The United States Munitions
. List. 121.2 Interpretatiooa of the United States
Munitions List. 121.3 Aircraft and related articles. 121.4 Amphibious vehicles. 121.5 Apparatus and devices under
Category lV{c). 121.6 Cartridge and shell casings. 121.7 Chemical agenll. 121.8 . End-items. components. accessories.
attachments. perts. firmware. software and systems.
121.9 Firearms. 1Z1.10 Forgings. castings and machined
bodies. 121.11 Military demolition blocks and
blasting caps. 121.12 Military explosives. 121.13 Military fuel thickeners. 121.14 Propellants. 121.15 Vessels of war and special naval
equipment. Authority: Section 38. Arms. Export Control
(a) The following articles. services and related technical data are designated as defense articles and defense services pursuant to sections 38 and 47(7) of the Arms Export Control Act (22 U.S.C.-2778 and 2794(7)).
Changes in designations will be published in the Federal Register. Information and clarifications on whether specific items are defense articles and services under this subchapter may appear periodically in the Munitions Control Newsletter published by the Office of Munitions Control.
(b) Significant Military Equipment. An asterisk precedes certain defense articles in the following list The asterisk means that the article is deemed to be "significant military equipmenl'! to the extent specified in § 120.19. The asterisk is placed as a convenience to help identify such articles. Catepny I-Fiinrm.
*(a' Nonautomatic. semi-automatic and fully automatic firearms to caliber .50 inclusive. and all components and parts for such firearms. (See II 121.9 and 123.1~ 123.19.)
(b) Rifleacope. maDufactured to military speCifications. and specifically desiped or moaified components thereCor; firearm silencers and luppresaoi's. inciudill8 flash suppressors.
'(c) Insurgency-counterinlUr8ency type prearms or other weapons havill8 a special iiiilitary application (e.g. close assault weapons systems) regardless of caliber and all cOlJ1ponents and parts therefor.
Cateaort' II-Artillery Projec:lon
*(a) Guns over caliber .50. howitzers. mortars. and recoilless rifles.
*(b) Military flamethrowers and projectors. (c) Components. parts. accessories and
attachments for the articles in paragraphs (aJ and (bJ of this category. inclUdinB but not limited to mounts and carriages for these articles.
[NOTE: "Significant mil itary equipment" means articles for which special export controls are warranted because of their capacity for substantial military utility or capacity.]
TABLE 2-111-1. The United States Munitions List.
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SECTION IV - SPECIAL PROVISIONS
A. CONSTRAINTS ON ELIGIBILITY. - -
1. Terrorism.· Unless the President finds that the national security requires otherwise, -he shall terminate all assistance~ sales, credits and guaranties to any government which aids or abets (by granting sanctuary from prosecution) any individual or group which has committed an act of international terrorism. [Sec. 620A, FAA, and Sec. 3(f), AECA]
2. Nationalization of U.S. Property. Assistance will be su·spended for countries which have nationalized, expropriated, or seized U.S. property, or have imposed discriminatory taxes. Assistance is also to be suspended if a country has initiated steps to repudiate or nullify existing agreements with U.S. citizens or entitles without taking proper compensatory action.
3. Transfer. The purchaser or grant recipient must agree not to transfer title or possession of any defense article or related training or other defense services to any other country without prior U.S. consent; the President must report to the Congress before such consent is given. [Sec. 3(a)(2), AECA, and Sec. 505(a), FAA].
4. Prope~ Use of ~ateriel. Sales and assistance may be made to coun-tries only for purposes of lnternal security, legit5mate self-:defense, C1Vle action, or regional or collective arrangements consistent with the United Nations (U.N.) Charter, or requested by the U.N. (Sec. 4, AECA, and Sec. 502, FAA) •
5. Communist-Controlled Countries. Assistance may be provided to Communist countries only if the President exercises his waiver authority under section 614(a), FAA and concomitantly finds and reports to Congress that such asslstance is vital to the security of the United States and promotes the independence of the recipient country from international communism. [Sec. 620( f), FAA].
6. Narcotics. Economic and military assistance and sales to a country will be suspended if the President determines- the government of that country has failed to take adequate steps to prevent either the sale of illegal drugs or other controlled substances to U.S. government personnel or their dependents or the smuggl ing of such narcotics into the United States. [Sec. 481(h), FAA].
7. Violations. Any government using American equipment and/or services in substantial violation of an applicable agreement entered into under U.S. law with that government shall be made ineligible for future U.S. assistance until such time when the President determines that such violations have ceased and has been assured that they will not recur. [Sec. 505(d), FAA, and Sec. 3(c), AECA].
8. Police, Counterterrorism, and Military Intelligence Programs.
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a. The FAA p'rohibits using funds authorized under the Act to conduct any police training or related programs either in a foreign country, or in' the united States. All military assistance, not just train'ing, is subjec~ to this prohibition.
b. "pol ice" training in the context of the FAA prohibition in::" cludes military police as well as civilian police, if the military police perform on-going civi 1 ian 1 aw enforcement functions. "lfeither the name given to a unit nor the' ministerial authority under which i-t operates i,s sufficient to determine whether a particular unit is a IIpolice unit." The determining factor is the nature of the functions £erformed by the ,unit. Assistance in foreign countries for any phase of civilian law enforcement (except maritime law enforcement or international narcotics control) is prohibited.
, , ' c. The AECA does not prohibit pnlice training or related ~rograms~ However, prior DSAA approval shall be obtained before offering t is ,type defense article or service through foreign military sales p'rocedures. ,
• . ' • I
, d. If the DSAA authorizes foreign students 'to attend military Eolice training, foreign government must certify that the students will not be 1nvolved in any civilian law enforcement functions for at least two years after receiving the trairiing.
e. "Lawenforcement" includes apprehension and control of 'politi-cal offenders and opponents of the government in power (other than prisoners of war), as well as persons suspected of common cr~mes.' ,
f. The prqhibitions discussed above do not apply to units that have the sole function of that aspect of internal securit~ which may involve combat operations against insurgents or legitimate self- efense of national territory against foreign invasion, whether or not the unit is called "pO,:", 1ice." '
g. If some personnel from a smaller unit within a larger unit that is e1i'gib1e for assistance are d'etailed to on-go1ng civilian law enforcement functions, then just the smaller unit wlll be prohibited from receiving grant support under the Foreign Assistance Act. However, no grant funds may be used in any program of i nterna 1 i nte 11 i ~ence or survei 11 ance on beha 1 f of any fqreign goVernment either within the nited states or abroad. ' ,
h. Antiterrorism and Counterterrorism. training may be request~d through the Department of State (Attention: MItT and Pf'f/SAS) using United States Embassy channels. The DSAA should be informed of any request for antiterrorism or counterterrorism training.
i. Limited military intellitence trainin~ 'fs available. The scope of this type trai~ing sh.a" b~ 1im1ted~ trai~ing t at is direct1~ 'related to combat or 0£erat10nal lntelllgence or lnte1l1gence mana,ement 0 combat or operational 1ntelligence at the joint military staff 'eve. In case of doubt about whether or not a particular course or type of training falls into one of these two categories, obtain a' clarification from the DSAA.
j. Defense articles, defense services and training will not be sold or leased to foreign organizations or personnel under the AECA unless
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they are part of the national defense establishment, under the direction and control of the ministry responsible for defense matters.
k. Requests for training for foreign %erSonnel (or units) that are not part of the Defense Ministry must be directe to the Department of State .and to the Agency of International Development through United States Embassy channels. The DSAA and relevant Military Department should be informed of the request.
1. Prior DSAA approval must be obtained for the sale or lease of defense articles, defense ,services, or training to foreign organizations or personnel if they are engaged in on-going civilian police functions under the direction and control of the ministry responsible for defense matters.
9. Incendiary Items and Riot Control Agents. The U.S. Government generally discourages the purchase of incendiary items and riot control agents, but recognizes that ·there are occasions when a country will have a legitimate need for certain types of such items. The following is U.S. Government policy regarding the sale of such items:
a. Napalm including napalm thickener, dispenser and fuses will not be provided through Foreign Military Sales (FMS) or on a commercial basis.
b. Requests for white phosphorus munitions should be submitted in accordance with the procedures established for Significant Military Equipment * (SME) (see Chapter 7, Section I of this manual). Requests should indicate, by * type of ammunition requested, the quantity and intended use of the ammunition. Requests should be accompanied by mission's opinions as to whether the amount requested is reasonable in relation to the intended use, current on-hand inventories, and predictable usage rates of such items; and requests must contain assurance from the host government that the white phosphorus munitions will be used only for purposes such as signalling and smoke screening. DSAA will be responsible for coordinating approval of the request. Upon approval, DSAA will advise the cognizant DoD component of the approval along with the conditions for its use which will be made a part of the LOA. .
c. Riot control agents may not be provided via FMS but certain types are available on a -commercial basis. Such proposed commercial sales require that an export license be obtained from the Department of State, Office of Munitions Control.
B. SHIP TRANSFERS.
1. Vessels 20 years old or more and no more than 3,000 tons (light load displacement) or less may be transferred after 30 continuous days of the date that the USN notifies Congress of its intent to make the transfer. Naval vessels less than 20 years old or more than 3,000 tons may be transferred only after enactment of specified legislation authorizing the transfer. These criteria and Congressional oversight provisions are prescribed by 10 USC 7307. . .
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CHAPTER THREE RESPONSIBILITIES AND RELATIONSHIPS
SECTION I - RESPONSIBILITIES
A. GENERAL.
1. Within the Executive Branch, the National Security Council, the Office of Management and Budget, the Department of the Treasury and others all have responsibilities related to security assistance. However, aside from the President, the principal legislated responsibilities fall to the Secretary of State and to the Secretary of Defense.
a. The Secretary of State is responsible for continuous supervision and general direction of the program. This includes determining whether there will be a program for a particular country or activity and, if so, its size and scope. I tal so inc 1 udes the determi na t i on of whether a particular sale will be made and, if so, when.
b. The Secretary of Defense is responsible primarily for establishing military requirements and for implementing programs of defensearticles, defense services, and military training.
2. The Congress authorizes and appropriates the funds for the U.S. Government financed portions of security assistance. The Congress also has an oversight role with respect to the sale of defense articles and services to foreign countries and international organizations.
B. THE DEPARTMENT OF DEFENSE.
1. The growing size, complexity, and importance of the security assistance program requires that recommendations, decisions and implementing actions be coordinated and tracked in a timely manner to ensure coherent support of foreign and national security objectives. Several departments, agencies, and offices are involved in the coordinations. (See Figure 3-1-1.)
2. Detailed functions relating to security assistance are found in the FAA,. the AECA, and Executive Orders that give security assistance authority and responsibility to the Secretary of Defense. There is additional detail in applicable DoD directives, instructions, terms of reference and in specific memoranda signed by high level defense officials. In general, the major responsibilities of the principal DoD components are:
a. The Under Secretary of Defense (Policy) (USDP) acts for the Secretary of Defense and is his principal representative and spokesman on security assistance matters. He works closely with the Director, DSAA, who provides staff support for security assistance matters.
b. The Assistant Secretaries with regional responsibilities have an interest in security assistance policy that directly affects their regions
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and work with the Director, DSAA, on regional security assistance policy matters and budget development.
. c. The Assistant Secretary of Defense (Acquisition and Logistics) * (ASD/A&L) is responsible for delivery and movement policy for security assis- * tance materiel.
d. The Under Secretary of Defense for Research and Engineering (USDRE) oversees considerations of rationalization, standardization, and interoperability with U.S. allies, and assures conformance with technology transfer and industrial collaboration policies.
e. The Assistance Secretary of Defense (Comptroller) (ASD(C)) establishes policy and procedures involving financial management, fiscal matters, accounting pricing, auditing, and international balance of payments as these matters relate to security assistance. Within this office, the Department of Defense Foreign Military Sales Financial Management Manual (000 7290.3-M) is published.
f. The Defense Security Assistance Agency (DSAA) is the principal organizational element through which the Secretary of Defense carries out his responsibilities for security assistance. It serves as the 000 focal point and clearinghouse for tracking arms transfers, budgetary, legislative, and other security assistance matters through the analysis, coordination, decision, and implementation processes. It keeps all concerned elements of the 000 informed about the status of ongoing security assistance actions and raises issues through appropriate channels when decision of higher authority is required~ All authorities conferred on the Secretary of Defense by the Foreign Assistance Act and the Arms Export Control Act (AECA), and all authorities under those acts delegated by the President to the Secretary of Defense, are redelegated to the Director, DSAA.
g. The secretaries of the MILDEPs advise the Secretary of Defense on all security assistance matters that have an impact on their departments. They act for the Secretary of Defense on security assistance matters only when the responsibility has been specifically delegated. The Secretaries also ensure that their departments are responsive to the Secretary of Defense (or to those to whom an appropriate delegation of authority has been made).
h. The military departments have security assistance as an integral part of their overall defense mission. They procure and provide defense articles and services and provide training to meet approved security assistance requirements. They also are responsible for providing information necessary to ensure that proper security assistance planning can be accomplished, e.g., information related to production capacity that is associated with integrating MILDEPs and security assistance procurement planning.
i. The Joint Chiefs of Staff (JCS) correlate security assistance objectives with joint military force planning. The JCS provide the Secretary of Defense with military advice on security assistance.
j. The Unified Commands have security assistance responsibilities, i.e., to correlate security assistance programs with regional plans, support
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FIGURE 3-1-1 DECISION CHANNELS FOR SECURITY ASSISTANCE
THE PRESIDENT THE NSC THE OMB
SECRETARY OF STATE
SECRETARY OF DEFENSE ... -- .... ~- --, t , I l
UNDER SECRETARY OF DEFENSE • l FOR POLICY I , l
1 DIRECTOR ~ _____ 4 ASSISTANT
DSM SECRETARIES
I j
I SERVICES I I JCS J • • , I I CINCS I I , • , • I
• U.S. EMBASSY/SECURITY I L ___ ~_ .. ASSISTANCE ORGANIZATIONS (SAO) IN COUNTRIES
LEGEND: = Direction = Coordination
FIGURE 3-1-1. Decision Channels for Security Assistance.
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TABLE 3-1-1
SAO PROGRAM MANAGEMENT AND OVERSIGHT FUNCTIONS
Maintain liaison between DOD components, the appropriate elements of the U.S. Diplomatic Mission, and the foreign defense organization in order to:
1. Enable the foreign government to acquire information needed to make decisions concerning the acquisition, use, and required training involved in obtaining defense articles and services from the United States through security assistance programs (keeping in mind that the host countries are to be encouraged to establish and depend, to the extent possible, upon their own procurement missions in the United States).
2. Obtain information needed to evaluate host military capability to employ and maintain equipment being requested and to assist, as required, in the processing of the foreign government's security assistance proposals.
3. Enable the United States to request the foreign government to take action in order to facilitate the timely, efficient, and responsible implementation of approved security assistance programs.
4. Assist U.S. Military Departments and their subordinate elements in arranging for the receipt, transfer, and acceptance of security assistance materiel, training, and other services for recipient countries.
5. Monitor the progress of DOD security assistance programs and transactions, initiating appropriate remedial action or advising appropriate DOD components on problems and issues encountered.
6. Perform required in-country programming, planning, management, and implementation functions relating to FMS and International Military Education and Training programs.
7. Keep host country military officials informed on appropriate U.S. security assistance laws, policies, and procedures.
8. Monitor FMS billing statements and payments and keep the appropriate host military informed, as necessary, on financial requirements and procedures.
9. \ Engage the host military, to the extent practicable, in cooperative planning for total mil itary acquisitions in an orderly fashion over a 3- to 5-year planning period.
10. Enable the United States to acquire information concerning potential future defense acquisitions by the foreign government and anticipate demands on U.S. resources.
TABLE 3-1-1. SAO Program Management and Oversight Functions.
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acquisition of the item or weapon system. Such interest could include: prior purchases, prior requests for P&A, P&R, or an LOA for which data has already * been released or approved for release, and purchase of weapon systems which * util ize the item, i.e., ammunition capable of being used with the weapon system. DOD Components will assure that countries addressed on such Materiel Requirements Surveys are eligible to purchase the item or weapon system'under the U.S. National Disclosure Policy. Final eligibility determination will be * made by DSAA in coordi.nation with the Department of Statp.. *
4. Coordination. Generally, Materiel Requirements Surveys will initially be developed within the cognizant DOD Component. The cognizant Component is responsible for assuring that the message or letter is properly coordinated before dispatch. Such coordination must include DSAA. The required coordination with DSAA will be initiated through the Management Division of the Operations Directorate which will be responsible for conducting the necessary staffing within OSD and with the Department of State. ' Prior to submitting proposed Materiel Requirements Surveys to DSAA, the cognizant DOD Component will also assure that any required coordination with other involved DOD Components is accomplished.
SECTION II - PLANNING DIMENSIONS
A. PLANNING CONSIDERATIONS.
1. Objectives of Long-Ran~e Planning. The objective of long-range pl anning in security assistance , s regul ar, orderly program impl ementation. The transfer of end-items is necessarily accompanied by planning of follow-on support, logistics, and other elements of continuity. The reliability of the U.S. on a long-term basis depends on this "total package approach."
2. Limitations to Planning. "Planning" in security assistance is not possible in the same way the 000 plans in the FYDP and program-budget process. This is because the USG does not "promote" sales (except in rare instances), financing is obtained only on a year-to-year basis and is, in most instances, not assured for the long term. Moreover, the USG does not plan for countries; countries must do their own planning and must set their own priorities. The level of planning capability varies from country to country; the more sophisticated the planning in a country, the less likely the country is to make the U.S. privy to its plans. Lastly, crises, conflicts, and other events frequently intervene to change directions in programs and overall financing allocations. Within these limits, however, some estimates of needs and priorities can be made, and every effort must be made to anticipate the shape of the future without expecting that it will result in a directive plan.
3. Planning is Resuired in Three Basic Areas: Budget, Procurement and Pol itical. These are dlscussed below in the context of three basic communities.
a. The Security Assistance Budget.
- Need for defensible country programs
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(7) Reports from the RCS: DSAA (AR) 1200 FMS reporting system which contain classified information will be marked:
"CLASSIFIED BY SAMM (DOD 5105.38-M), DECLASSIFY UPON NOTIFICATION BY THE ORIGINATOR."
c. Coproduction. For all countries and international organizations, information which indicates by specific type any item of Major Defense Equipment (MOE) (e.g., F-16 aircraft) is classified in coproduction proposals only. Such information will be declassified upon termination of negotiations. Such information will be marked:
"CLASSIFIED BY SAMM (DOD 5105.38-M), DECLASSIFY ON TERMINATION OF NEGOTIATIONS."
d. Nonrecurring Cost Recoupment Charges. Worksheets showing calculations whlch contain projections 0 dollar levels of future U.S. investment in the development of a defense item and projections of future multiple foreign requirements will be classified (see Chapter Seven of this Manual). Worksheets will be declassified when the defense item becomes obsolete to U.S. requirements. Worksheets will be marked:
"CLASSIFIED BY SAMM (DOD 5105.38-M), DECLASSIFY UPON NOTIFICATION BY THE ORIGINATOR."
C. RELEASE OF INFORMATION.
1. Unclassified.
a. Public. In accordance with the AECA, Section 21(f), it is the policy of the 000 to maximize to the fullest extent consistent with national security the amount of information available to the public. Further, it is the policy of the 000 to comply fully with both the specified provisions and the general intent of the Freedom of Information Act, as amended. Release of information will be in accordance with procedures established by 000 Directive 5400.7 and 000 Instruction 5400.10.
(1) The DSAA 1200 FMS information system is a frequent source for providing information to the public. The DSAA maintains a consolidated data base which contains information about each FMS case by collecting essential data from a variety of sources over the life of each case. The 1200 system is the exclusive source for such consolidated data and contains records from the inception of the FMS program.
(2) A large percentage of individual records in the case are unclassified. They may, however, when grouped, produce a complete or virtually complete compilation of data. These kinds of groupings include but are not limited to: all current LORs, current undelivered balances of'MDE, or groupings of generic classes of items such as "all surface to air missile sales". Such groupings may then reveal concepts about a country's order of battle
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plans or current or planned defense posture of a country, region, or geographical area and result in a CONFIDENTIAL classified compilation of individually unclassified data. Such a compilation then, by DoD 5200.1-R, paragraph 2-211, would be denied public release.
(3) Classification and denial of release to the public on this basis shall be fully supported by a documentary explanation that will identify with the specific criteria which resulted in such a judgment.
. b. Compilation of FMS Case-level Data. On June 25, 1985, the Secretary of Defense decided that a compilation of FMS case-level data should be classified Confidential. For this purpose, a compilation is defined to consist of data provided to the Congress quarterly pursuant to paragraphs (1) and (2) of section 36(a) of the Arms Export Control Act that covers a single period longer than five consecutive calendar quarters.
(1) Since a quarterly report covers FMS case-level data for the entire fiscal year through the date of the report, the report for the fourth quarter covers a period of four consecutive calendar quarters. Therefore, a classified compilation could consist, for example, of the data contained in the reports for the fourth quarter of FY 1985 and the second quarter of FY 1986 for one or more purchasers.
(2) The Data Management Division, Office of the DSAA Comptroller, ensures that quarterly reports of FMS case-level data are provided only to persons having a need-to-know who hold a current personnel security clearance if such persons already possess sufficient numbers of quarterly reports so that the provision of additional reports would constitute a compilation thereof.
(3) This classification shall only be applicable to compila-tions of quarterly reports prepared after June 25, 1985. *
c. Foreign Governments and International Organizations. Unclassified information may be released to the concerned country or international organization as appropriate for purposes related to security assistance. Price data may be released to MAP and IMETrecipient countries and international organizations, subject to recipients I understanding that prices are provided for procurement planning and related purposes only, and that prices quoted are estimates and are not necessarily those which have been or will be applied to articles delivered or services rendered or training furnished to the country or organization as Grant Aid.
2. Classified.
a. Tentative Security Assistance Plans and Programs. Classified information as to tentative plans and programs for the budget and future years may be released to an involved foreign government or international organization to the extent necessary for its effective participation in the security assistance planning process or its effective development of related defense plans, and to the extent that it can be relied upon to maintain adequate security precautions and to use the information only for the purposes for which provided. Classified dollar levels of tentative country or organization programs may be released only with the specific permission of the Director,
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b. Country and Re~ion. The willingness of the U.S. Government to se 11 mi 1 ita ry equ i pment va r1 es country by country in accordance with the military requirements, ability to maintain and use, compatibility with existing inventory, and impact on the perceptions and the actions of the buyer's neighbors.
c. Foreign Polic~. The willingness of the U.S. Government to sell military equipment varies wlth the time and the situation; thus changes in terms of foreign policy, diplomacy, economy, finances and security, reflecting the changing world-wide situation, can cause changes in such willingness from time to time.
d. National Disclosure Policy. The National Disclosure Policy Manual (NDP-l) records the levels of classification which the U.S. Government is willing in general to release to cited countries. Requests for exceptions to policy established by this document are handled by the National Disclosure Pol icy Board which is chaired by the Department of Defense, at the Under Secretary level.
e. Mil itar~ Threat. The degree to which the transfer responds appropriately to the mllitary threats confronting the recipient.
f. Collective Securit~ Capabilities. Whether the transfer will enhance the reciplent's capabillty to participate in collective security efforts with the United States.
g. Countering of External Aggression. Whether the transfer will promote mutual interests in countering externally supported aggression.-
h. Stabil ity within Regions. Whether the transfer is consistent with United States interests in maintaining stability within regions where friends of the United States may have differing objectives.
i. Counterbalancing of Positive and Negative Factors. Whether any detrimental effects of the transfer are more than counterbalanced by positive contributions to United States interests and objectives.
j. Legislative Restraints. The principal legislative restraints on Foreign Mil itary Sales are reviewed in Chapter 7, this Manual. These reflect the guidelines and constraints that must be followed prior to the approval of Military Export Sales.
C. POLICIES.
1. List of Eligible Countries to Purchase or Lease Defense Articles or Defense Services. The current list of eliglble countries and lnternational organizations determined by the President is provided as Table 6-1-1. It should be noted that sales to certain countries or international organizations may be suspended for legal or policy reasons. Any questions relative to the eligibility of a foreign country or international organization should be referred to DSAA Operations.
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2. Designation of Defense Articles and Services. A copy of the U.S. Munition,s [1St 1S .included 1n Chapter 2. Items in categories which are asterisked (*) on this list are considered Significant Military Equipment (SME).
3. Foreign Military Design and Construction Sales.
a. Authority. The AECA, Section 29 authorizes the sale of design and construction services to eligible foreign countries and international organizations provided the full costs are paid to the U.S. by the purchasing country or international organization. If such services are to be procured by the USG for sale under Section 29, the purchaser must make funds available in such amounts and at such time as they may be needed to meet the payments requi red by the contract and any damages and costs that may accrue from the cancellation of such contract, in advance of the time such payments, damages, or costs are due.
b. Congressional Reporting. Congressional reporting requirements in the AECA, Section 36(6), apply to any design and construction program valued at $200 million or more.
c. Use of FMS Procedures. The LOA and standard sales procedures will be uti1.ized for all design and construction programs. Normally, design and construction services will be offered as follows:
(1) When the design and construction services are a part of a total program, the services will be included in the total system case under the cognizance of the managing 000 component. A special note will be added to the case indicating that the services are offered under the authority of the AECA, Section 29 and ·alsoidentifying the construction agent for this portion of the program, e.g. U.S. Army Corps of Engineers. In certain cases, the 000 component program manager and the construction agent may wish to conclude an internal agreement to summarize management relationships for a program.
(2) When the design and construction services are not part of a total program, the 000 component responsible for providing the design and construction services will be assigned management responsibility for the case.
(3) When the design and construction services are a follow-on requirement to a previous major system sale, the 000 component responsible for providing the design and construction services will prepare the LOA. However, where special ci rcumstances such as unique funding requi rements are experienced' the requirement for preparation of the follow-on LOA will be coordinated with the DSAA Operations Directorate to determine the appropriate management responsibility.
4. Proper Use of Materiel. Consistent with its resources and the situation prevailing in-country, the designated U.S. overseas military SAO will as~ist 000 components in observing and reporting on the utilization by the foreign country of defense articles and services acquired through FMS or leased to the recipient by the 000.
5. Diversions of Materiel. In order to implement the AECA, Section * 21(;), 10 U.S.C., Sections 1336 and 975, and the SAC, Defense Subcommittee *
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report, 99-176 of 6 November 1985, the following policies govern the * allocation of defense materiel between U.S. forces and international security requirements in the event of competing demands:
a. Use of Normal Priorities Structure. To the maximum extent possible, initial allocatlons of materiel shall be made within the normal priorities structure--the Uniform Military Materiel Issue and Priority Systems (UMMIPS). Both offshore procurement (OSP) and Special Defense Acquisition * Fund (SDAF) assets should be considered as alternatives to diversion of U.S. * forces and/or FMS assets. See SAMM, Chapter 9, Section III, paragraph J; and * Chapter 14, respectively. *
b. Directed Diversions. Presidentially-directed, or Secretary of Defense-initiated materiel allocations shall be accorded sufficient priority through diversion of assets from other programs to assure accomplishment of the directed allocation within the time period specified.
c. Withdrawal from U.S. Forces. High priority FMS requirements may be met by diverting from productlon for or withdrawing equipment from U.S. forces, providing the operational readiness posture of these forces is not significantly lowered and payback can be accomplished within a reasonable period of time. Such initial determination will be made by the MILDEPs and 000 components. Any diversion or withdrawal which would impact U.S. National Guard or Reserve forces must be coordinated with DSAA, which will in turn coordinate the proposal with the OASD/RA, pursuant to 000 Directive 1225.6. If tanks are being withdrawn, a determination will be included in the required * Congressional notification that the proposed sale will not increase the * shortage of tanks in the U.S. National Guard or Reserve during the current * five-year defense plan. Should tanks need to be withdrawn from the U.S. * National Guard or Reserve, the Congress shall be advised of the plan to * replace the specific tanks. *
d. Diversion from FMS~ Materiel being procured or stocked specifically for FMS may be diverted to meet higher priority foreign requirements or urgent needs of U.S. Forces with the prior concurrence of the Director, DSAA, who will, as appropriate, obtain policy guidance within the USDP.
e. Approval Channels. Requests or recommendations for diversions of FMS equipment will be referred to the Director, DSAA. In those instances where agreement cannot be reached with DSAA concerning the use of foreign program assets, or diversion of defense materiel, the matter will be referred to the Secretary of Defense for decision pursuant to the procedures established by Deputy Secretary of Defense Memorandum, Subject: IIAllocation of Defense Materiel and Services Between U.S. and International Requirements,1I which provides for:
(1) Normal Allocation from Production. Under normal cir-cumstances, the MILDEPs will fill secunty assistance materiel requirements from production on a first-in, first-out basis, utilizing normal production lead times, unless the 000 can meet urgent requirements from earlier production without an undesirable effect on the combat readiness of U.S. forces.
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(2) Deviations for National Security Considerations. There may occasionally be instances when national security considerations and foreign policy objectives indicate a requirement to deviate from this DoD policy by expediting delivery of equipment to a foreign purchaser. If such situations arise, and the MILDEPs or the OSD staff become aware that such expedited delivery or the performance of FMS services by DoD personnel would appear to have an undesirable effect on the combat readiness of U.S. forces, the Undersecretary of Defense (Policy) (USDP) will request the MILDEP involved to provide its assessment of the situation to USDP and the Assistant Secretary of Defense (Acquisition and Logistics) (ASD(A&L)) for OSD staff review. The * USDP will refer the coordinated recommendation to the Secretary of Defense for review and decision. Because of the importance of such decisions, it is essential that the Secretary of the Mil itary Department personally verify these assessments and make the report to USDP and ASD(A&L) when such referral * is required.
(3) Report to Congress. The AECA, Section 21(;) requires a report by the President to the Congress "with respect to any proposal to sell, under this section (sales from stocks) or under the authority of Chapter 2B, AECA, any defense arti'cles or defense services, if such sale could have a significant adverse effect on the combat readiness of the Armed Forces of the United States." There may, however, be instances where, in the view of the Secretary of the MILDEP, supply action would have an impact of sufficient importance to warrant Secretary of Defense review, but would not constitute a significant adverse impact on the DoD requiring a Presidential report to the Congress. Therefore, in each instance where the MILDEP Secretary refers a potential impact case to the USDP and ASD(A&L), the referral will include an * assessment as to whether:
(a) Supply action would affect the operational readiness of the military service, or have other important impacts which the Secretary considers warrant Secretary of Defense review, but which are not serious enough to constitute a significant adverse impact requiring either alteration or termination of the supply action, or an overriding Presidential report to the Congress; or
(b) Supply action would constitute a significant adverse impact within the meaning of the law, and if taken, would require such a report to the Congress. The term "significant" is a subjective one, and this section does not attempt to define all circumstances in which an impact might be "significant."
(4) Additional Information Reguired. As required, the Secretary of Defense will make the final determination as to whether the DoD will provide the equipment or services on an expedited basis and whether the impact of doing so is significant within the meaning of the AECA, Section 21(i). In referring impact cases to the Secretary of Defense, the Secretary of the Military Department should therefore, in every instance, provide the information outlined in the AECA, Section 21(i)(1)(A) through (D), i.e.:
(a) The country or international organization to which the U.S. proposes to make the sale;
(b) The amount of the proposed sale;
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(c) A description of the defense articles or services the U.S. proposes to sell; and
(d) A full description of the effect the proposed sale will have on combat readiness of the Armed Forces of the United States.
(e) In accordance with SAC, Defense Subcommittee report, ** 99-176 of 6 October 1985, a determination as to whether the sale will increase the shortage of tanks in the Army National Guard and Reserve in the current five-year defense plan. If so, a plan to replace the specific tanks should be submitted. '
(5) Shipments from Production. While the language of the AECA, Section 21(i} pertains only to shipments from DoD stocks and performance of services by DoD personnel, impacts can occur when the DoD diverts materiel to foreign recipients which is scheduled for delivery from production. Therefore, the procedures and assessments outl ined in paragraph C.4. above apply to both categories of transfer.
(6) Presidential Report. In those cases where he takes action to advise the President of the requirement for a report to the Congress, the Secretary of Defense will provide the analysis relevant to the justification and certification called for in the AECA, Section 21(i}(I}(E}, as well as a * determination of whether a shortage of tanks will occur in the National Guard * and Reserve with an attendant repl acement pl an (if the withdrawal is for * tanks), as required by the SAC, Subcommittee report 99-176 of 6 November 1985. * This latter tank determination and replacement plan must be included in the * President's report to Congress. In this connection, a "proposal to sell II * within the meaning of Section 21(i} refers to a decision at an appropriate level of the U.S. Government to make a sale and to direct the issuance of an LOA or signature of a document with comparable effect, and does not refer merely to the receipt of a request for P&A, or the receipt of a request for a Letter of Offer, or the making of a recommendation with respect thereto. No Presidential report is therefore required if the ultimate decision is not to make the sale. The AECA, Section 21(i} is also interpreted as being applicable to a situation in whiC;h the significant adverse effect becomes apparent only after a sales contract is concluded. However, no Presidential report is required with respect to supply action under a sales contract where the supply action is altered in order to avoid a significant adverse effect on U.S. combat readiness which would otherwise occur. The report required by 10 * U.S.C., Section 133b is covered in SAMM, Chapter 7, Section IV. *
(7) Secondary Items. The above also applies to secondary items, including spare and repair parts as well as major end-items. However, in those cases wherein the foreign government has made an investment in the U.S. inventory under a Cooperative Logistics Supply Support Arrangement (CLSSA) for spare and repair parts support, the MILDEPs will satisfy security assistance requirements based upon priority on the same basis as U.S. force requirements. The head of an Inventory Control Point (ICP) may approve the issue of stocks below the reorder point to FMS customers when they determine that there will not be an unacceptable impact on U.S. forces. The impact on secondary items must be considered whenev~r a total package of end-items and spare parts and support equipment is provided to a foreign country.
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6. Logistics Support.
a. Use of U.S. Militar~ Logistics S~stem. Implementation of accepted FMS cases wi 11 be accomp lis ed by the MIL EPsand 000 components as completely as possible within the existing organizational and procedural structure of the U.S. military logistiGs system. Use of the 000 transportation system will be only for special cases, i.e., ammunition to the Port of Exit or by special arrangement stated in the LOA.
b. Follow-On Logistic Support. Normally, foreign military sales of materiel are made only when the'1)oD has made or has approved plans to assure logistic support for the expected service life of the equipment. This includes follow-on spares support for equipment sold through FMS under estab-' lished Cooperative Logistic Supp1y Support Arrangements (CLSSAs) which will be afforded the same priority as that provided equivalent U.S. forces performing a comparable mission in the same geographical area. For other follow-on FMS spare parts cases, the normal lead time from procurement will apply.
7. Materiel Standards. It is 000 policy that defense articles offered and sold to foreign governments and international organizations reflect favorably upon the U.S. Therefore, defense articles offered and sold under forei gn mi 1 itary sales wi 11 normally be new or unused, or as a result of rehabilitation, possess original appearance insofar as possible, and, as a minimum, have serviceabil ity standards prescribed for' issue to U.S. forces. If the customer country desires exclusively new equipment, this requirement will be stated in the LO~. If the customer desires to purchase lias is/where is,1I this will also be stated in the LOA.
8. Communications securit~ (COMSEC) Programs. Discussions relating to COMSEC will not be initiated wit foreign governments without obtaining prior approval and specific guidance from DSAA. All foreign government requests for information will be forwarded to DSAA for staffing with cognizant DOD service organizations and definitive guidance. Upon notification of DSAA approval, standard FMS procedures apply to the request for a sale nf COMSEC equipment. This includes channels for submission of requests, use of the LOA, financial requirements in 000 7290.3M, etc. Specifically, the 000 component processing the request is also responsible for assuring that all National Disclosure Policy requirements are satisfied and that the program details are staffed with appropriate security activities before a response is provided to the foreign purchaser. Refer to NACSI 6001, IIForeign Military Sales of Communications Security and Services to Foreign Governments and International organizations, and JCS Memo 131, IIJoint and Combined Communications SecuritY,1I dated 18 July 1983.
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9. Translation Services.
a. Responsibility. The responsibility for the translation of any documents restswlth the user or recipient country. U.S. SAOs should make this point clear to their host country counterparts.
b. Informal Translations. In day-to-day operations, SAOs may provide for government-to-government purposes only, "informal translations" using the same practices and procedures as the local U.S. diplomatic mission, provided the host country so requests, or the chief of the U.S. SAO determines an informal translation of an English text is in the U.S. interest. In each case, translators must clearly mark the translated document II Informal and unofficial translation -- English text governs." SAOs should ensure that a forwarding letter accompanies each contractual document (i.e., LOA) emphasizing that the English text is the officially binding document.
c. Other Requests. SAOs will not provide translation assistance to contractors or others who are not a part of the U.S. or host country official family. In the event the SAO receives a request from such sources, requestors should be advised to seek assistance from competent local translators.
10. Exclusive Licensinr Arran1ements. In cases where a request for P&R, P&A, or an LoA is received rom aoreign country or international organization and the request is known to fall within the area of an exclusive commercial license arrangement for the item or service, the following special procedures will apply:
a. The prospective buyer wi 11 be provi ded with the name of the foreign firm involved and informed that this firm has exclusive rights in that country relating to the sale of the article or service being sought.
b. In the event the prospective buyer insists that it wishes an FMS transaction it should be advised that the request should be set forth in a letter from the Minister of Defense or the Deputy Minister of Defense (or the equivalent) to the Director, DSAA outlining the reasons for the desire to purchase by means of an FMS transaction rather than from the foreign licensee •.
c. On receipt of such written requests containing justification, in order to comply with provisions of the AECA, Section 42(a), the Director, DSAA will advise the foreign firm involved (or its designated representative
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of a third NATO party, information as to possible subsequent transfers shall be provided to DSAA in accordance with the formats contained in Chapter 7, Section IV.
12. Security Assistance Survey Teams. * a. Purpose. The U.S. will use security assistance surveys on a *
selected basis to further the security interests of the U.S. and to enhance the security of friends and allies. Since security assistance surveys are * often interpreted by the receiving government as an implied U.S. commitment to approve arms transfers and/or assist in their financing, such surveys should be initiated only after careful consideration of possible consequences. Except as may be specifically directed, the following guidelines will apply:
(1) A U.S. commitment to conduct a security assistance survey * will only be made after the ramifications of undertaki.ng such a survey have been assessed in a thorough and coordinated manner by all concerned USG agencies.
(2) The process of reaching a decision to dispatch or not to dispatch a survey team will include an assessment of the economic impact, including funding limits of potential arms transfers, and other data beyond strictly military considerations but pertinent to the survey at hand (e.g., human rights factors). In the event of a decision to dispatch a survey team, this information will be reflected in the terms of reference provided the team. . '.
(3) Current arms sales restraint policies, including regional arms control implications, will be considered during the process of determining whether or not to dispatch a survey team.
(4) Security assistance survey teams will be led by the DoD~ * with the Department of State providing a deputy team chief of roughly compara-ble rank. Military service affiliation of the team shall be determined by the purpose of the survey. In the event a joint team is required, the team chief will be determined on the basis of the military service having predominant interest. DoD participation shall be limited to the minimum number required to gather effectively the technical information necessary to prepare the survey report. Teams will contain representatives from other agencies as necessary to ensure the success of the in-country information-gathering effort. The Secretary of State will have final authority to rule on the participation of the survey team by agencies other than the DoD; though it is expected that such deci s ions wi 11 normally be reached by consensus between State and Defense. To the maximum extent possible, the concerns of the other involved agencies will be considered in resolving team composition.
b. Financing. When the survey is determined to be dictated 'by U.S. Government interests rather than those of the foreign country, it may be financed by the U.S. with each agency represented on the team bearing a,' pro rata share of the survey costs. DSAA, on a case-by-case basis, will advfse each DoD department or agency on the method of funding, whether by FMS case or by the U.S. Government agencies represented on the team~
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c. Responsibilities. The appropriate regional office of the Assistant Secretary of Defense for International Security Affairs or International Security Policy is responsible for coordinating 000 activities and actions relating to security assistance surveys including all required inter- * face and coordihation with the Department of State, Arms Control Disarmament Agency and other appropriate agencies of the U.S. Government. The DSAA and the OJCS shall be kept informed of all personnel details of survey teams. All actions shall be. coordinated with the JCS and DSAA. The appropriate regional office will draft Terms of Reference for the teams and will obtain approval of the Department of State. General Terms of Reference are set forth at Table 6-1-2. A Survey Team Checkl ist, outl ining the process of reviewing requests for survey t~ams through the preparation of the Report is also at Table 6-1-3.
13. Suspension of Individual Items. When the Department of State directs the suspension ,of the sale under FMS or on a direct commercial basis of a specific article, DSAA will notify the applicable 000 components of the suspension. Such suspension will also be considered to apply equally to components of the item as well as the specific end item.
a. Determination of Item Components. When suspension of an individual article is directed by the Department of State, DSAA will ask the appl icable 000. component to conduct a review to identify components of the item.
b. Advice to Department of State. Upon receipt of the listing of components, DsAA wi" advi se the Department of State, Bureau of Pol i ti coMilitary Affairs of the components of the suspended item to enable them to notify the Office of Munitions Control (OMC). This will then enable OMC suspension of the components, as well as the end item identification to ensure that suspensiohs are complete.
c. . Notice to 000 Components. DSAA will advise the appropriate 000 components and the affected foreign government of the suspension of the sale of end items, as well as applicable components •
. .
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TABLE 6-1-1 FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS ELIGIBLE TO PURCHASE
DEFENSE ARTICLES AND DEFENSE SERVICES UNDER THE AUTHORITY OF THE AECA
AFRICA
Benin Botswana Burkina Faso Cameroon Cape Verde Chad Djibouti Equatorial Guinea Gabon Ghana Guinea Guinea-Bissau Ivory Coast Kenya Liberia Madagascar
Malawi Mali Mauritani a Mauritius ~lozambique Niger Nigeria Rwanda Senegal Sierra Leone Somalia Sudan Togo Zaire Zimbabwe
Malta Netherlands Norway Portugal Spain Sweden Switzer 1 and Turkey Un ited Kingdom
(Incl Crown Agents)
Yugoslavia
EAST ASIA AND PACIFIC
Australia Brunei Burma China Fij i Indonesia Japan Korea
Malaysia New Zealand Papau -
New Guinea Phil ippines Singapore Taiwan Thailand
NEAR EAST AND SOUTH ASIA
Al geri a Bahrain Bangladesh Egypt India Israel Jordan Kuwait Lebanon Morocco
Nepal Oman Pakistan Qatar Saudi Arabia Sri Lanka Tunisia United Arab
Emirates Yemen Arab
Republic
WESTERN HEMISPHERE
Antigua and Barbuda
Argentina Bahamas Barbados Belize Bolivia Brazi 1 Canada Chile Colombia Costa Rica Dominica Dominican
Republic Eucador El Salvador
Grenada Guatemala Haiti Honduras Jamaica Mexico Panama Paraguay Peru St Christopher
/Nevis St Lucia St Vincent and the Grenadines
Suriname Trinidad and
Tobago Uruguay Venezuela
INTERNATIONAL TREATY ORGANIZATIONS
North Atlantic Treaty Organization (NATO) and its Agencies
Organization of American States (OAS) International Commission of Control
and Supervision in Vietnam International Commission of Control
and Supervision in Laos United Nations (UN) and its agencies
including the International Civil Aviation Organization
NOTE: Sales to certain countries may have been suspended for legal or policy reasons. Any questions relative to the eligibility of a foreign country for FMS, FMCS, or leases should be referred to DSAA Operations.
TABLE 6-1-1. Foreign countries and International urganizations Ellgible to Purchase Defense Articles and Defense Services under the Authority of the AECA.
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* * * * *
*
*
* * * *
000 5105. 38-~1
TABLE 6-1-2
GENERAL TERMS OF REFERENCE (FOR SECURITY ASSISTANCE SURVEY TEAMS)
A. Teams will report to the U.S. Ambassador, or in his absence, the charge d'affaires, upon arrival in country, and will serve under the overall supervision of the Ambassador. All formal consultations with the host country will be conducted subject to the concurrence of the U.S. Ambassador, with the participation of such Embassy staff as he may direct. Prior to departure the team will brief the Ambassador on its preliminary conclusions.
B. The team recommendations should reflect the "total package" concept: end-item, ancillary equipment, training and logistics. Recommendations should not mirror-image U.S. force solutions. At least three levels of funding alternatives should be presented in the report.
C. The team should evaluate the military manpower base, its absorptive capacity, the existing logistics and maintenance support capability, the capability of the country to prevent compromise of sensitive data and equipment, training requirements, and compatibility of recommended equipment with that currently in the host country inventory.
D. The team will make no comment to host governments concerning possible availability of U.S. Government resources in any form.
E. The team will not give host government any price and availability data, 000 lead times on equipment, or indicate any prospects for accelerated deliveries. The team, however, may provide general orders of magnitude information concerning cost and avai 1 abi 1 ity for ill ustrative purposes. Fi rm estimates can be provided only through normal channels and only in response to specific requests conveyed through the U.S. Embassy, not through the survey team.
F. The team will not oblige the U.S. Government to the sale of any specific defense article or service.
G. The team will not provide any kind of independent assessment mation of the external threat as perceived by the host country. classified information will be in accordance with the U.S. National Policy.
or confirRelease of Disclosure
H. The team will not provide military advice concerning tactics, doctrine, basing, combat planning, or operations.
1. The team will avoid any possible indication that USG would assist in construction of airfields, camps, or other military facilities.
J. The team will make no commitment to follow-on technical discussions or further surveys.
*
TABLE 6-1-2. General Terms of Reference for security Assistance Survey Teams. *
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K. The team will not undertake to prov~de the host country with an interim report.
L. The team will debrief the appropriate Unified Commander on its preliminary findings prior to its return to Washington.
TABLE 6-1-2. (continued)
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TABLE 6-1-3
SECURITY ASSISTANCE * SURVEY TEAM CHECKLIST
A. Consideration of providing a security assistance survey is a result of a * foreign government presenting the U.S. ~overnment with a significant arms sale r~quest, or requesting the U.S. Government to survey host country defensive capabilities and requirements. Also, the U.S. Government could, at its own initiative,propose a survey team.
B.' The normal response to the initial request for a survey shall be that the scope of the request requires review before a decision on the survey can be given. A comprehensive review is then initiated of current arms sales restraint policies, or regional arms control considerations, of the economic impact and the human rights implications of arms sales to the host country.
C~ State Department, DoD, and ACDA shall review the arms want list within the context of the President1s policy on conventional arms transfers and other policy guidance, highlighting areas requiring policy decisions. The DoD will prepare a preliminary assessment of the availability of the requested equipinent or services, as well as the requesting nation1s requirement for and technical abili,ty to absorb the items in question. State Department will review the FMS financing situation for the host country. Any statement regarding FMS financing beyond the current fiscal year1s approved budget must receive Executive Office clearance by NSC and OMB. Future financing commitments can only be made in accordance with prevailing procedures.
E. State Department and AID will estimate the extent of the ability of the host country to devote its economic resources to defense purchases without an unduly deleterious effect on the host country economy. Needs for additi ona 1 information will be identified during this review.
F. Simultaneously with the above review, the U.S. Embassy will be instructed by the Department of State to contact appropriate host country ministries to ascertain the extent to which the host country is willing to commit its own resources to military purposes over the next three-five years, noting that financial parameters are essential ingredients in a realistic survey effort.
G. The Director of Central Intelligence will be requested to produce inter-agency threat assessment.
H. Information gathered above is incorporated into an Action Memorandum to the Secretary of State, coordinated with ACDA, DoD, OMB, and NSC, to determine: (1) whether to send a survey team; and (2) the mission of the team. In' the event a decision is made to send the team prior to completion of the information gathering process outl ined above, as many of the above steps as are possible will nevertheless be completed prior to departure of the team. Affirmative decisions will be reported to the Congress by DoD/DSAA as required by the AECA, Section 26(b).
TABLE 6cI~3. security Assistance Survey Team Checklist.
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accepted and implemented FMS cases unless, if approved, the request would have resulted in the issuance of an amendment to the basic LOA {e.g., requests involving a significant modification of a system or an increase in the overall capability of the item requested, etc.}. In addition, the following routine training actions are exempt from this prior coordination requirement: however, the DSAA should be an information addressee on all such responses:
{1} Denial of requests within established policy {e.g., training courses closed to all foreign nationals; information not cleared for release; training for support equipment not in the purchaser's inventory}.
{2} Notification of class cancellations for previously ap-proved quotas.
{3} Quota requests which cannot be accommodated within desired timeframe.
{4} Senior officer courses where annual foreign participation is limited and restricted to those invited by chiefs of services.
3. Coordination of Reguests for P&R, P&A, or an LOA.
a. The Director, Joint Staff, Office of the Joint Chiefs of Staff and the USDR&E must be advised by the DSAA util izing the format at Figure 7-1-2 of all new requests for P&R, P&A, or an LOA which meet the following criteria:
{1} All requests for Coproduction or Licensing Agreements for Major Defense Equipment as defined in paragraph B.2.a.{2} above.
{2} All other requests for MDE which are expected to result in a notification to the Congress or those determined by the Director, DSAA Operations to be of a sensitive'nature.
b. The receipt of the information copy by DSAA of the P&R, P&A, or LOA request required by paragraph C.1.b. will be the basis for the above notification.
NOTE: All requests for information, no matter how informal the request, e.g., oral, letter, message, etc. {other than P&A requests intended to lead to the preparation of an LOA}, are considered to be P&R requests and require the same channels of submission as outlined in paragraph C.1.b. above.
4. Letter of Intent {LO!} {DD Forms 2012, 2012-1, 2012-2}.
(1) T,ypes of LOI. There are two Formats for LOIs: The DD Form 2012, used to flnance procurem~nt of long lead time items prior to the issuance of an LOA; and the DD Form 2012-1, used to finance procurement' of long lead time items during the period between issuance of an LOA and ~ccep~ tance by the purchasing country or international organizations.
{2} Limitation of Cost or Funds. As both forms contemplate a specified dollar limitation upon the llability of the purchaser for' the procurement of long lead time items, in order to comply with the requirements
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of the Arms Export Control Act, it is necessary that all cost-reimbursement contracts awarded to implement a LOI (procurement as well as research and development) include a Limitation of Cost or Funds contract clause (see FAR * 52.23.2-20 and 52.232-21). That clause may be deleted by contract amendment * after the purchaser's acceptance of the LOA.
_ (3) Aeprova1 of the DSAA. Use of the DO Form 2012 does not constitute authorizatlonto take implementing action under such LOI in advance of compliance with the statutory reporting requirement of Section 36(b) of the AECA. In the event that a 000 component is of the opinion that production schedu1 ing requirements necessitate initiation of procurement of long lead time items in advance of full compl iance with Section 36(b) of the Arms Export Control Act, the 000 component concerned shall, prior to transmitting a proposed LOI to the purchasing country, or international organization, promptly forward its recommendations to the Director, DSAA, for a decision. If an exception is made by the Director, DSAA, a modified version of the DO Form 2012 or 2012-1 will be provided to the 000 component by the DSAA on a caseby-case basis.
, , (4) Amendment to the LOI. DO Form 2012-2, Amendment to Letter
of Intent, should be used for amend,ng LOIs as provided for in paragraph 2(c) of DO Form '2012 and DO Form 2012-I.
(5) ,Sample Formats. Refer to Figures 7-1-3, 7-1-4 and 7:-1-5.
(6) . DSAA Countersignature. DSAA countersignature is required prior to the submission of any DO Form 2012, DO Form 2012-1, and DO Form 2012-2 to the purchaser.
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C. PROCEDURES.
1. Consistent with the provlslons of Chapter 7, Section I, Paragraph C.1.b., the DoD component should proceed with the development of the LOA upon receipt of the LOR from an FMS customer, American embassy, or Security Assistance Organization (SAO).
2. The letter of request must be validated to insure the potenti'a·l customer is an eligible FMS recipient, that the article or service sought may be sold and that the request was received through proper channels. Approval channels for LORs are included in Chapter 7, Section I, paragraph C.1.b.
3. DoD ·components must forma lly acknowl edge recei pt of approved· LORs within five days.
4. Data cards for valid LORs must be submitted to DSAA for input into the 1200 system within ten calendar days of receipt of the request. Further information concerning the DSAA 1200 system requirements can be found in Chapter 15, this Manual. .
5. The DoD component is responsible for inserting the appropriate Military Articles and Services List (MASL) line data for each line item on each LOA. Should there not be any applicable line in the MASL, it is the responsibiJity of the DoD component preparing the LOA to establish a line in accordance with the procedures outlined in Chapter 15, Section IV, this Manual. The LOA will not be processed and will be returned to the preparing component if line items are not in the MASL or if they contain incorrect MASL data.
a. Identification of End Items. The LOA will contain a separate line item for each generic item that ;s measured in quantities; e.g., AH-1 Helicopters, F-15 Aircraft, 155mm Ammunition, Harpoon Missiles.
b. Identification of Dollar Items. The LOA will group generically into a single line item dollar-denominated lines such as spare parts and tra i ni ng, to the extent that common generi c codes apply. For example, a series of tool kits with identical National Stock Number and generic codes should be aggregated under a single line in the LOA.
c. Use of Sub-Case Identifier Systems. Sub-cases may be used as separate line items to the extent that they are compatible with· the MASL breakout and reporting by generic code identification. End items which are identified by separate generic codes shall not be commingled with dollardenominated items with a different generic code.
6. DoD components will process LOAs which meet the thresholds for reporting to the Congress in accordance with Section IV of this chapter.
7. Maximum processing time between the receipt of a request for a LOA and its submission or Amendment thereto to DSAA for coordination and/or countersignature is sixty (60) days. Earlier response will be made whenever possible.
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8. DD Form 1513 - Information Conveyed.
a. General. The LOA, when signed, is an official agreement between the United States and the purchasing country or international organization regarding terms and conditions pertaining to furnishing certain goods or services. As such, the DD Form 1513 and its enclosures must provide sufficient detailed information so as to make clear the obligations of the United States and the Purchaser. The type and amount of information 'which must be conveyed will vary depending on the nature of the sale. However, at least some information which is supplemental to the preprinted IIGeneral Conditions" of Annex A of the DD Form 1513 must be provided for each sale. The normal method of accomplishing this is in the form of explanatory "Notes" which are cross-referenced to the line item information included on the face of the DD Form 1513. Inclusion of this information as a complete package within the LOA, rather than orally or by separate correspondence, reduces misunderstandings regarding FMS Case commitments.
b. Supplemental Information and Coordination for LOAs.
(1) Checklist. Figure 7-II-7 provides a summary of supplemen- * tary information which must either be addressed or considered when the LOA is develQPed. The chart indicates that information must be provided to purchasers in the ,form of Notes or Supplemental Terms and Conditions, depending upon the nature of the articles and/or services being sold. Items indicated by "X" must be addressed in ,Notes or Supplemental Terms and Conditions to the DD Form 1513; those indicated as being on an "as-required basis (A/R)" should be addressed if the nature of the transaction so warrants. The following subparagraphs include instructions and discussion regarding the nature of this supplemental information. The subpar,agraphs are aligned to the column "Supplementary Information for Letters of Offer". In addition, the Checklist shown in Table 7-11-8 may be used for the coordination of selected LOAs.
(2) Transportation Instructions.
(a) Related Chapters. Refer to Chapter 8, Section II I, this Manual, for detailed transportation information and Chapter 5 for export licensing and customs clearance requirements.
(b) Purchaser of Method of tlle O. 5.. Go,vernment ,and chased will be shipped. are designed to fulfill this purpose under the normal Foreign Military Sales (FMS) method of shipment (i.e., by collect commercial bill of lading to freight fOY'Y/arders, or by the use of codes prescribed in DoD 4140.17-M). However, supplementary instructions are required to enable purchasers to fill out Blocks ,(33) and" (34) properly., DoD 5105.38-D (MAPAD) identifies transaction instructions furnished by the Defense Logistics Agency (DLA) to meet this need; it should be used by all DoD components as a guide.
(c) Method of Transportation. It is DoD policy that to the extent possible, FMS recipients should be self-sufficient in transportation of their materiel. The normal "method of movement of FMS materiel is by commercial carrier to the freight forwarder designated by the purchaser.
7-30 Change No.7, 15 September 1986
000 5105.38-M
agreements, Paragraph C.8.c.(I), Section II of this Manual, provides a systematic application of pricing policies to develop a "Financial Analysis." Use of this guidance should minimize subsequent revisions of price caused by erroneous cost elements or incomplete adherence to pricing policy.
d. Financial Annex to the DO Form 1513. To improve the quality of payment schedules attached to [OAs, Paragraph M.2, this section, provides criteria for payment schedule preparation. The financial annex payment schedule provides the purchaser with a reference to his financial commitment. A sample of the Financial Annex is shown at Figure 7-111-3.
(1) Payment Schedule. The payment schedule should project quarterly payments due as of the 15th day of the last month of each calendar quarter. Each deposit amount should be sufficient to cover all costs and contingencies anticipated to be incurred on the purchaser's behalf during the succeeding quarter, plus a reserve to cover termination liability (for sales from procurement). Specifically, the deposits should provide for incremental payment of materiel, services, administrative charges, accessorial charges, contractor holdback, termination liability, nonrecurring cost recoupment charges, asset use, and any other applicable contingency or add-on costs.
(2) Revisions to Payment Schedules. Implementing agencies will revise LOA payment schedules as necessary. A new payment schedule should be furnished whenever a substantive change in payment requirements is evident. Obviously, this condition varies by country and case. As a minimum, a DO Form 1513-2 providing a new payment schedule is required when costs are anticipated to vary (increase or decrease) from the existing payment schedule by more than $500,000 or 10%, whichever is greater, during any 12 month period. This· threshold should be reduced when the purchaser's FMS program is relatively small. Implementing agencies should establish procedures to insure that payment schedules on cases valued at $7 million or more are reviewed against actual financial requirements at least once annually.
2. Preparation of Payment Schedules.
a. General. The preparation of payment schedules require budgetary estimates under conditions of inflationary uncertainty and uncertainty as to the specific dates when: purchasers will accept and return the LOA for implementation; requisitions for items will be initiated; contracts will be 1 et; progress payments must be made to contractors; deli veri es of items, particularly spare parts and support equipment, will occur; and personnel costs will be incurred.
b. Criteria. Actual outlays therefore, can be expected to vary from initial payment schedules. This does not negate, however, the requirement to develop a payment schedule for each case. In general, payment schedules will include estimates of outlays for sales from 000 stocks, sales from procurement, 000 services and training, administrative charges, accessorial and transportation charges. The paragraphs that follow provide criteria for developing payment schedules in anticipation of these costs:
(1) Timin~ and Amount of Payments. All payment dates on Financial Annexes other t an initial deposits should be 15 days before the end of each calendar year quarter (e.g., 15 December, 15 March, 15 June, 15
7-93 Change No.7, 15 September 1986
000 5105.38-M
September). Payment amounts should equal the anticipated outlays for the next 90 days after payment date,. The timing and amounts of c1 aims for payment wi 11 coincide with existing FMS bill ing procedures as described in 000 7290.3-M. The payment schedule should, specify the initial deposit required at the time of case acceptance. The amount of initial deposit must be sufficient to cover outlays/deliveries anticipated until the first follow-on payment is scheduled for receipt.
(2) Uncertain Date of' Acceptance. When the exact date a 'purchaser will accept an LoA is uncertain, and a payment is needed a specific number of days after that acceptance , assume that the purchaser wi 11 accept the LOA 60 days after it is offered, and specify the first payment date accordingly.
(3) Materiel from Stock. The schedule for payments related to materiel to be sold from stock will be based on estimated deliveries during each 90 day period foll owing the quarterly payment dates cited in paragraph * (1) above. The basis of forecasting anticipated del ivery will be the use of * historical delivery information of specific generic codes and other materiel categories and should be supported by an analysis showing the means ,of forecasting.
(4) Materiel from Procurement. Payment schedules for materiel obta i ned through pr:ocurement reQui r; og progress payments to the contractors wi 11 be estimated ~ased on hi storica 1 cost curves. These curves should be systematically developed for all major 000 weapon systems and should be reviewed periodically for validity. Payment schedules should include both the estima,ted disbursements to contractors as well as appropriate contract holdback percentage. '
(5) Concurrent Spare Parts. For case lines involving concurrent spare parts,estimate,,,~d,ol1ar deliveries consistent with the delivery of the end items being supported~
(6)- Purchaser-Initiated Re, uisitions. For cases involving purchaser-initiated requl$ltlons l.e., open-en or blanket order cases expressed in do1iars) over a one..;year period, phase payments quarterly for one-fourth of the estimated case value. The first payment should be scheduled 90 days after the estimated date of cas~ acceptance and initial deposit.
(7) Person'ne1 Services. For caseS involving personal services, develop a monthly phasing based upon the scheduled dates and elements of cost of the services being provided.
(8) Training Cases. For training cases- involving foreign student, entry into courses, schedule the payment in consonance with known or estimated entry into the training courses involved. Open':'end or blanket order training cases will ,require an initial deposit of 25% when the case exceeds $25,000.
(9) Ro~a1ties or Pro-Rata Nonrecurring Cost Cha~ges. For cases involving royaltles or pro-rata nonrecurring costs or a'sset use charges, schedule the payment in consonance with production schedules of the end item
,for which the payment is peing collected. I '
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DoD 5105.38-M
(10) Administrative and Accessorial Charges. Schedule administrative and accessorial costs in consonance with payment schedules for the primary items or serv,i ces bei ng provi ded under the case. However, one half * (50%) of the administrative fee reflected in block 23 of the DD Form 1513 will * normally be required with acceptance of the LOA.
3. Budgetary Authority for FMS Orders. To protect the integrity of the FMS purchaseris financial commitment and to ensure proper accounting for fiscal resources of the DoD components, the DoD uses a series of uniform, DoD-wide budgetary controls for FMS agreements. Budgetary control of an FMS agreement begi ns after acceptance of the sa 1 es offer by the purchaser. The purchaser forwards three signed copies of the accepted agreement to the SAAC together with any required initial deposit. If the terms of sale have been observed by the purchaser, the SAAC records acceptance of the LOA and releases to the appropriate'DoD agency specific values of obligational authority •. The DoD agency must then account for, control, and report all obligations incurred against the authority received. The essence of the budgetary control system is the "FMS Planning Directive" (DD Form 2061) and the "Request and Approval of FMS Obligational Authority" (DO Form 2060). Each of these documents form a building block of fiscal data in support of the "FMS Status of Budget Execu:tion Report" (DO Form 1176). Specific detailed controls for use of these forms for FMS sales are prescribed in DoD 7290.3-M.
4. Collection of FMS Payments.
a. Trust Fund Accounts. The AECA requires FMS monies to be collected in advance of delivery, service performance, or contractual progress payments. The SAAC performs accounting operations for these monies from two parent FMS trust fund accounts: (1) 978242, (Deposits, Advances, Foreign Military Sales, Defense) and (2) 97-11X8242, (Advances, Foreign Military Sa 1 es , Execut i ve, Defense) • The 978242 account is used for II recei pt II of payments from customers for FMS sales. Account 97-11X8242 is for "disbursements" made to suppliers on behalf of the FMS purchasers.
b. Integrity of Payment· Identification. Cash collections into the FMS Trust Fund are the result Of lnltlal deposits at acceptance or are based on requests for funds (billings) prepared by the SAAC. Each deposit made is recorded to the appropriate FMS case accepted by the purchaser. If the deposit is not identifiable at time of payment it is recorded in the FMS customers I "Ho1ding Account" pending identification. Throughout the 1 ife of the FMS case, the integrity of case-1 eve 1 accounting for depos its wi 11 be maintained by the SAAC.
c. Holding Accounts.· Cash payments often are received cumula-tively which are in excess of the final value of a particular case. With purchaser approval, these surplus funds can be transferred into a Trust Fund "Ho1ding Account" similar to a pseudo-case. Monies on deposit in the holding account are available to the purchaser for application to other FMS cases. However, upon purchaser demand these overpayments wi 11 be refunded provi ded there are no collection delinquencies for other FMS cases for that purchaser.
d. Payment Office. All payments, whether cash or credit, must be made to the Security Asslstance Accounting Center, Denver, Colorado, 80279, for deposit to the FMS Trust Fund account for the purchaser. All payments
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DoD 5105.38-M
should identify the specific reason for the payment. SAAC is responsible for billing and follow-up collection action for indebtedness incurred by FMS customers on FMS cases. Implementing agencies will not make requests to FMS customers for payments on FMS cases, but will refer collection problems to the SAAC for appropriate action.
e. Movement of Customer Funds. SAAC takes action on requests for movement of funds to and from holding accounts or between cases only when such requests are properly channeled through the FMS customer's designated representative or as directed in a memorandum of agreement between SAAC and the FMS customer regarding the use of holding accounts and transfer of funds. The use of notes or other references in LOA documents (1513, 1513-1, or 1513-2) concerning transfers or refunds of FMS customer funds is not authorized.
f. Initial Deposit Follow-up. When SAAC receives a customer.,. signed LOA (DD Form 1513) or amendment (DD Form 1513-1) that is not accompanied by a required initial deposit, SAAC will initiate follow-up action on the tenth working day following receipt of the signed LOA.
, ,
(1) SAAC wiil notify the in-country security assistance organization (e.g., MAAG, ODC, MILGP, DAO, etc.), the customer organization responsible for payment,and the U.S. implementing agency case manager that the initial deposit has not been received. This notification will state that implementation of the LOA or amendment is being held in abeyance pending receipt of the initial deposit.
(2) Based on circumstances applicable to the case, including the continued validity of the P&A data supporting the case, the case'manager will determine whether to extend th¢ offer expiration date for a .longer period pending receipt of the initial deposit. The implementing agency will issue a letter or message extending the offer expiration date or notifying SAAC, SAO, and DSAA that the offer cannot be extended beyond its current expiration date.
(3) If the expiration date cannot be extended, or if the extended date expires without receipt of the initial deposit, SAAC will obtain DSAA-COMPT-FMD concurrence to cancel the case. A new LOA will be required if the customer's requir~ment is still valid.
(4) These procedures do not apply to offers where SAAC has been notified that the initial deposit is in the hands of another USG agency (e.g., lA, SAO, Embassy), that a courtesy deposit has been made on SAAC's behalf, that funds have been wire transferred (with transaction number), or where the LOA is financed by Military Assistance Program or FMS credit funds.
5.· Di sbursement Authority for FMS Agreements.
a. Case-Level Accounting. FMS monies collected in advance of delivery, service performance, or contractual progress payments are available for reimbursement to U.S. appropriations or direct-cite payment to U.S. producers. Although these disbursements are controlled on an FMS country basis, accounting for FMS transactions is on an individual case basis. In other words" country cash depos its may be di sbursed for the fi nanc i a 1 requi rements associated with any of that country's cases with its consent, expressed or
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000 5105.38-M
FIGURE 7-III-2
CONTRACT ADMINISTRATION RECIPROCAL AGREEMENTS
COUNTRY
Canada (CN)
United Kingdom (UK)
France (FR)
Netherlands (NE)
Ita ly (IT)
Belgium (BE)
Germany (GY)
Denmark (DE)
European Participating Governments (EPG)
NATO Integrated Communication System Management Agency (NICSMA) (N2), (K4)
NATO (All infrastructure programs administered by a NATO Command or NATO Agency)
NATO (All other intrastructure programs administered by a host country)
NATO E-3A (N1), (K7) (K8), (W1)
EFFECTIVE DATE
27 Jul 1956
30 Oct 1979 30 Dec 1985
17 Jul 1981
18 Apr 1985 9 Apr 1982
7 Jan 1983
26 Apr 1983
6 Dec 1985 6 Dec 1983
3 Apr 1985
19 Dec 1980
30 Sep 1981 6 May 1980
30 Sep 1981 28 Oct 1980
10 Feb 1981
Program Conception
COST WAIVED
Contract Audit Quality Assurance and Inspection
Contract Audit Quality Assurance and Inspection **
Contract Audit
Contract Audit Quality Assurance and Inspection
Quality Assurance and Inspection
Quality Assurance and Inspection
Contract Audit Quality Assurance and Inspection
Quality Assurance and Inspection
Contract Audit Quality Assurance and Inspection (F-16 Follow-on Buy)
FINANCIAL ANNEX SUPPLEMENTARY FINANCIAL TERMS AND CONDITIONS
000 5105.38-M
1. This agreement is financed entirely with cash, FMS loan funds, MAP funds, or any combination thereof as indicated in Block 27 of DO Form 1513, Letter of Offer and Acceptance (LOA), or Block 28 of DO Form 1513-1, Amendment to Offer and Acceptance. The Purchaser agrees to make payments in such amounts and at such times as may be specified by the U.S. Government, including any initial deposit indicated on the LOA required to meet financial requirements arising from this case.
2. The Foreign Military Sales Billing Statement, DO Form 645, will serve as the statement of account and bill ing statement. An FMS Delivery Listing identifying items physically or constructively delivered, and services performed during the billing period, will be attached to the billing statement. The Security Assistance Accounting Center (SAAC) forwards billing statements to Purchasers no later than 45 days before payments are due, and Purchasers will forward payments in U.S. dollars (cash or request for advance of loan funds) to the U.S. Government in time to meet prescribed due dates. For cases financed with MAP funds, these funds are merged in the trust fund and applied to the cases. Such costs as may be in excess of the amount funded by MAP or credit agreement funds must be paid by the purchaser, if additional MAP/credit funds are not avail.able. Questions concerning the content of DO Form 645 billing statements and requests for billing adjustments should be submitted to the Security Assistance Accounting Center (SAAC/FS), Lowry AFB, Colorado 80279-5000. .
3. Cash payments in U.S. dollars for inditial deposits and amounts due and payable on Quarterly Billing Statements (DO Form 645) are to be forwarded to the SAAC or other formally-agreed-upon depository in time to meet prescribed payment due dates. The preferred method for forwarding cash payments is by bank wire transfer. The following addresses apply for cash payments:
a. Bank Wire Transfer to SAAC: Federa 1 Reserve Bank of Kansas City, Denver Branch FRB/DVR (3801) Air Force AFAFC/SAAC
b. Bank Wide Transfer to Federal Reserve Bank of New York: Federal Reserve Bank of New York Foreign Accounts Control Staff 33 Liberty Street New York, New York 10045
c. Check mailing address to SAAC: AFAFC/SAAC Lowry AFB Denver, Colorado 80279
FIGURE 1-111-3. Supplementary Financial Terms and conditions
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000 5105.38-M
sensitivity of technology contained in the defense articles, defense services, or design and construction services proposed to be sold, and a detailed justification providing the reasons necessitating the sale of such defense articles or services in view of the sensitivity of such technology. The AECA, Section 36(b), paragraph (4) requires that each certification cite any quarterly report submitted under Section 28 of the Act which 1 isted a Price and Availability (P&A) estimate or a request for LOA, which was a basis for the proposed sale. The FAA, Section 620C(d), requires a special certification for notifi cati ons of proposed sales to either Greece or Turkey. The International Security and Development Cooperation Act of 1985, Section 130(c), requires a special certification for notifications of proposed sales to Jordan pertaining to United States advanced aircraft, new air defense systems, or other new advanced military weapons. These Jordan certifications, prepared by the State Department and signed by the President, will be appended to Section * 36(b)(I) notifications to the Congress involving such items.
(2) The AECA, Section 36(b)(I) states that the LOA shall not be issued to the North Atlantic Treaty Organization (NATO), any NATO member country, Japan, Australia, or New Zealand, if the Congress, within 15 calendar days after receiving such certification, or to any other country or organization, if the Congress within 30 calendar days after receiving such certification, adopts a joint resolution stating that it objects to the proposed sale, * unless the President states in his certification that an emergency exists which requires such sale in the national security interests of the United States. If the President states in his certification that an emergency exists he shall set forth in the certification a detailed justification for his determination, including a description of the emergency circumstances which necessitate the immediate issuance of the LOA and a discussion of the national security interests involved.
(3) In addition, the President shall, upon the request of the Committee on Foreign Relations of the Senate or the Committee on Foreign Affairs of the House of Representatives, transmit promptly to both such committees a statement setting forth:
(a) A detailed description of the defense articles, defense services, or design and construction services to be offered, including a brief description of the capabilities of any defense article to be offered;
(b) An estimate of the number of officers and employees of the United States Government and of United States civilian contract personnel expected to be needed in such country to carry out the proposed sale;
(c) The name of each contractor expected to provi de the defense articles, defense services, or design and construction services proposed to be sold (if known on the date of transmittal of such statement);
(d) An evaluation, prepared by the Director of the Arms Control and Disarmament Agency in consultation with the Secretary of State and the Secretary of Defense, of the manner, if any, in which the proposed sale would:
1. Contribute to an arms race; ~. Increase the possibility of an outbreak or
escalation of conflict;
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000 5105.38-M
3. Prejudice the negotiation of any arms controls; or
4. Adversely affect the arms control policy of the United States;
(e) The reasons why the foreign country or international organization to which the sale is proposed to be made needs the defense articles, defense services, or design and construction services which are the subject of such sale and a description of how such country or organization intends to use such defense art i c 1 es, defense servi ces, or des i gn and construction services;
(f) An analysis by the President of the impact of the proposed sale on the military stocks and the military preparedness of the United States;
(g) The reasons why the proposed sale is in the national interest of the United States;
(h) An analysis by the President of the impact of the proposed sale on the military capabilities of the foreign country or international organization to which such sale would be made;
(i) An analysis by the President of how the proposed sale would affect the relative military strengths of countries in the region to which the defense articles, defense services, or design and construction services which are the subject of such sale would be delivered and whether other countries in the region have comparable kinds and amounts of defense articles, defense services, or design and construction services;
(j) An estimate of the levels of trained personnel and maintenance facilities of the foreign country or international organization to which the sale would be made which are needed and available to utilize effectively the defense articles, defense services, or design and construction services proposed to be sold;
(k) An analysis of the extent to which comparable kinds and amounts of defense articles, defense services, or design and construction services are available from other countries;
(1) An ana lys is of the impact of the proposed sale on United States relations with the countries in the region to which the defense articles, defense services, or design and construction services which are the subject of such sale would be delivered;
(m) A detailed description of any agreement proposed to be entered into by the United States for the purchase or acquisition by the United States of defense articles, defense services, or design and construction services or defense equipment, or other articles, services, or equipment of the foreign country or international organization in connection with, or as consideration for, such LOA, including an analysis of the impact of such proposed agreement upon United States business concerns which might otherwise have provided such articles, services, or equipment to the United States, an
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DoD 5105.38-M
foreign policy and national security objectives as outlined in the policy justification portion of the notification.
(e) When an exception to NDP-l has been granted for release of the classified or sensitive technology, a separate paragraph on the Sensitivity of Technology Statement (Table 7-IV-4A) should provide information to the effect that the sale is necessary in furtherance of the U.S. foreign policy and national security objectives outlined in the policy justification. Moreover, the benefits to be derived from the sale, as outlined in the policy justification of the notification, outweigh the potential damage that could result if the sensitive technology were revealed to unauthorized persons. Additional justification for granting the exception to NDP-l~ such as that included in the request for the exception, should also be provided in that paragraph when that information is available.
(f) The DSAA will forward the required Sensitivity of Technology Statement by a separate classified annex since the public disclosure of such information ·could adversely affect the foreign and defense policy interests of the United States.
(2) Section 36(b)(5)(A) of the AECA requires that a report * will be sent to Congress when the sensitivity of technology or the capability of major defense articles (including electronic devices, which, if upgraded would enhance the mission capability of a weapons system), major defense equipment, or services are enhanced or upgraded from the level of sensitivity or capability described in the original Section 36(b)(1) certification. This legislation also provides a continuing requirement for ten years following the original certification unless deliveries are completed sooner. Only . such changes in the levels of sensitivity or capability as previously described in the Section 36(b)(I) certification provided to the Congress are required to be reported to Congress and this action must be performed at least 45 days prior to delivery of the article or equipment or the furnishing of the service. Accqrdingly, it is necessary for the military departments and other agencies to monitor programs before deliveries are made to determine whether enhancements or upgrades have occurred. Copies of the original Section 36(b)(l) certification may be obtained from the DSAA Comptroller. Should reportable enhancements or upgrades be identified, military departments and agencies will submit a report to DSAA (FMSCD):
(a) Describing the manner in which the technology or capability has been enhanced or upgraded, including the significance of such enhancement or upgrade, and
(b) Providing a detailed justification for the sale of such enhancement or upgrade.
Thi s report wi 11 be sent to DSAA (FMSCD) in the format provi ded in Table 7-IV-4B with a copy of the original Section 36(b)(1) certification attached. A minimum of an additional 15 days prior to delivery of the items to the purchaser (a total of 60 days) is required for DSAA review and transmittal to the Congress. Rather than submitting multiple 36(b)(5)(A) reports to DSAA, * the military departments and agencies should consolidate and provide these reports to DSAA not less than 60 days prior to the forecast delivery of the affected equi pment or servi ces. Note that it is essenti a 1 for the mil itary
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000 5105.38-M
departments and agencies to maintain adequate documentation of each decision that justifies non-submission of Section 36(b)(5)(C) reports. A Section * 36(b)(5)(A) report is not required before delivery of enhancements or upgrades * previously identified in a Section 36(b)(5)(C) notification. *
(3) Section 36(b)(5)(C) of the AECA requires that any enhance- * mentor upgrade, the net cost of which meets or exceeds dollar thresholds for Section 36(b)(1) certification, as outlined in Section IV, paragraph B.1.a.(1) of this chapter, must be treated as though it were a separate LOA. Accordingly, if the net cost of an enhancement or upgrade of the previously described sensitivity of technology or capability of major defence equipment or defense articles as well as defense services or design and construction services meets or exceeds Section 36(b)(1) thresholds, the military department or agency will provide 36(b)(1) input that clearly describes the enhancement or upgrade, explains the level of sensitivity or capability that the change produces, and provides the estimated net cost of the change. The requirement to report enhancement or upgrade of previously described capabil ity or sensitivity of technology applies only to items or services that have not been delivered or performed. When the capability was clearly described in the Section 36(b)(1) certifi cati on and there is a current request to purchase an enhancement or upgrade thereof, data will be provided on Table 7-IV-4C only when the net cost of the enhancement or upgrade portion reaches the Section 36(b)(1) dollar threshold as follows:
Equipment/Services To Be Enhanced
Major Defense Equipment
Other Defense Equipment/Services
Design and Construction Services
Net Cost of Enhancement (Millions)
$ 14
$ 50
$200
Statutory notification for enhancements or upgrades of sensitivity of technology should be submitted within 30 days of the request to purchase in the format provided in Table 7-IV-4C to DSAA (FMSCD) for review and submission to Congress. Such changes in enhancement or upgrade requiring 36(b)(5)(C) certi- * fication may not be implemented nor maya corresponding DO Form 1513, DO Form 1513-1, or DO Form 1513-2 be issued until the certification has been processed to the Congress and the required time period pursuant to Section 36(b)(1) has elapsed. Deliveries of unmodified items on a case for which other items are to be enhanced or upgraded, such as unmodified spare parts, are unaffected and may continue to be delivered without interruption. Advance 20-day notifications prior to the statutory certifications will not be required for enhancement certifications.
7~112 Change No.7, 15 September 1986
* (deletion)
DoD 5105.38-M
to $50 million or more, does not require prior Section 36(b) notification to the Congress.
(2) A FMSO I transaction for $50 million or more, or an amendment to a FMSO I transaction which adds $50 million or more to the previoLfs case total, or a LOA for a FMSO II transaction for $50 million or more does require prior Section 36(b)(1) notification to the Congress.
h. The above exception to Section 36(b)(I) notification of FMSO I amendments is based on the following:
(1) FMSO I cases must be amended each year to adjust the dollar values based on requisition activities and new LOAs for this purpose are not practicable, and
(2) FMSO I cases reflect customer equity in the U.S. supply system and defense articles upon which these cases are based are not shipped to the country, but are drawn down against a corresponding FMSO II LOA.
2. Issuing Letters of Offer for $50 Million or More or for MDE of $14 Million or More.
a. The AECA provides that the LOA shall not be issued if Congress, within 30 calendar days (15 calendar days for NATO, NATO member nations, Japan, Australia, or New Zealand) after receiving the notification, adopts a joint resolution stating that it objects to the proposed sale, unless the * President, in his notification to Congress, had certified that an emergency exists which requires such sale in the national security interests of the United States.
b. If Congress adopts a concurrent resolution objecting to a proposed sale, the Director, DSAA \Alill promptly notify the appl icable DoD component of that fact, seek the guidance of the President as to the course of action which should be taken, and advise the cognizant DoD component of the action to be taken (see paragraph B.2.d. above).
D. PROCEDURES.
1. Categories of Purchasers.
a. The AECA makes a distinction between exempted purchasers (i.e., NATO, NATO countries, Japan, Australia, and New Zealand) and non-exempted purchasers (all others). '
b. For exempted purchasers:
(1) Advance notification is not required.
7-115 Change No.7, 15 September 1986
000 5105.38-M
(2) The waiting period after statutory notification is 15 days.
2. State and Defense Relationship, Staffing Agreement, and Timing.
a. Prior to any advance or statutory notification to Congress under the AECA, Section 36(b)(I), the DSAA must receive clearance from the Department of State for that notification.
b. Representatives of the State and Defense Departments have agreed that State policy deliberations, intra-agency coordination, and submission for Presidential approval (if required) and Defense preparation of the Section 36(b)(I) notice, Section 133b report, and the LOA all aim toward the common objective of completing these actions within 60 days after receipt of the prospective purchaser's complete request. The procedures established in this section are designed to meet these objectives.
c. Under normal circumstances the milestones indicated in Figures 7-IV-l and 7-IV-2 should be met by all functional areas involved in the processing of Section 36(b)(I) notifications and LOAs.
3. Submission of Supporting Data.
a. Concurrent with LOA or LOI preparation, the cognizant 000 component must submit the supporting data required for Congressional notification to the DSAA/Comptroller-Foreign Military Sales Division (DSAA/Compt-FMSCD). If the LOR case information has not been previously entered into the 1200 system, DSAA wi 11 make the entry. Supporting data (i ncl uding purchaser's reference and date of receipt by the implementing agency) are to be submitted, using the prescribed formats, within ten days of receipt of the letter of request from the purchaser. In order to enable the notification process to begin as soon as possible after receipt of the country request, it is essential that appropriate actions be accomplished by 000 components. The submission is to include a statement as to whether or not a Section 133b report will be required to be sent to the Congress.
b. Appropriate steps will be taken by the 000 components to assure that the ten-day requirement to provide data to DSAA is met. Consistent with this requirement field inputs will be obtained by 000 components on an expedited bas is as necessary. Additi ona lly, cost estimates \o/i 11 i ncl ude separate identification of the estimated dollar value of the MOE portion of the proposed sale. Rough order of magnitude cost estimates are acceptable for processing Congressional notifications. In the exceptional situation, if it is determined by the 000 component that the ten-day requirement cannot be met, approval for extension must be sought from the DSAA Comptroller (Chief, F~lS Control Division).
c. Requests from exempted prospective purchasers require the following data to be submitted: Military Justification (see Table 7-IV-2), Statutory Notification (see Table 7-IV-3), and, as required, Sensitivity of Technology Statement (see Table 7-IV-4A) and Impact on Current Readiness Report Data (see Table 7-IV-5).
7-116 Change No.7, 15 September 1986
DoD 5105.38-M
d. Requests from non-exempted prospective purchasers require the following data to be submitted: Notification as specified in Table 7-IV-l, Advance Notification; Table 7-IV-2, Military Justification; and, as required, Table 7-IV~4A, Sensitivity of Technology.
e. To the extent possible for non-exempted prospective purchaser requests, the submission should also include the supporting data required to meet the statutory notification requirement as specified in Table 7-IV-3. If these data can be provided during the initial submission, and no Section 133b report is required, no further data are needed by DSAA to process the advance and statutory Section 36(b)(1) notifications. However, if all data are not available, the advance notification data only should be submitted to meet the ten-day data submission requirement.
f. To the extent that it is not possible for the DoD component to provide statutory notification Table 7-IV-3 data with the initial submission, these data along with data in support of Section 133b reporting requirement (Table 7-IV-5), if appropriate, will be forwarded to DSAA/Compt-FMSCD as early as possible but no later than ten days after the start of the 20 day advance notification period so that the follow-on statutory notification will not be delayed. Should it be impractical to meet the ten day deadline, approval for extension must be sought from Chief, FMS Control Division, DSAA.
g. As the process evolves, the cognizant DoD component \'Jill be informed via message of each Congressional notification and provided with a copy of the letters which transmit the advance and statutory Section 36(b)(I) notifications to the Congress.
h. Following completion of the 20 day advance notification period and after State clearance, the Director, DSAA, will provide the statutory Section 36(b)(I) notification of the proposed sale to the Congress. At this time, and after receiving express authority from the Comptroller, DSAA, and coordination with DSAA Operations, the cognizant DoD component will furnish a copy of the unsigned LOA to the purchaser as an enclosure to a transmittal letter in the format of Table 7-IV-6 (Transmittal Letter for the Unsigned LOA). If Congress adopts a joint resolution objecting to a proposed sale, the * Director, DSAA will promptly notify the applicable DoD component of that fact, seek the guidance of the President as to the course of action which should be taken, and advise the cognizant DoD component of the action to be taken.
i. DoD components will submit signed LOAs to the DSAA/Compt-FMSCD, Countersignature Branch no later than five working days prior to completion of the statutory 15 or 30 day Congressional review period. Unless there are appropriate reasons to do otherwise, the expiration date assigned by the DoD components will allow for normal country review periods beyond the final date of the Congressional review. When the signed LOA and all subsequent amendments and notices are submitted to the DSAA, they will include in Block 11 under "DSAA Accounting Activity" the identifying DSAA Transmittal Number used for the statutory Congressional notification (e.g., 85-29). This number wi 11 be shown on the message sent to the DoD component advi sing of the dispatch of the statutory notification.
7 -117 Change No.7, 15 September 1986
000 5105.38-M
j. Cases for $7 million or more must be submitted to the Countersignature Branch with a termination 1 iability worksheet -- except for FMSO I and II cases, spare parts requisition cases, training cases, equipment and servi ces cases where the source is 000 inventori es, or programs for whi ch termination liability requirements have been waived pursuant to 000 7290.3-M.
k. Upon the expiration of the statutory 15 or 30 day waiting period the Comptroller, DSAA, will, if Congress has not adbpted a joint * resolution objecting to the proposed sale, countersign the LOA and return the original to the cognizant 000 component and forward a copy to SAAC. Upon receipt of: the DSAA countersigned LOA, the cognizant DoD component may forward the original signed LOA to the prospective purchaser.
E. CLASSIFICATION.
1. Advance Section 36(b)(1) Notifications. All data, information, and advance Congressional notifications of proposed sales to all prospective purchasers will be treated as', and marked "SECRET" or "CONFIDENTIAL" until the statutory notification is provided to the Congress. The following classification guidelines apply to all inputs of supporting data required for advance notifications by the Foreign Military Sales Control Division:
a. If none of the data presented is classified, the documents will be stamped "SECRET" or "CONFIDENTIAL" on the top and bottom of each page, all paragraphs will be preceded by "(U) ,II and the following marking will be shown on the bottom of the first page of each submittal:
"CLASSIFIED BY SAMM (DOD 5105.38-M) (CHAPTER 7, SECTION IV) DECLASSIFY ON STATUTORY NOTIFICATION TO
CONGRESS UNLESS REQUIRED OTHERWISE BY COMPETENT AUTHORITY."
b. If any of the data presented is classified, the documents will be stamped with the required level of classification on the top and bottom of each page, each classified paragraph will be marked with the required classification, and the appropriate "classified by" and "declassify on" data are to be entered on the bottom of the fi rst page of each submittal. The marki ng indicated in paragraph 1.a. abbve will not be used on these submittals •
.. 2. Statutor Section 36(b)(l) Notifications. As specified in the AECA,
Section 3 ,eac statutory not1 1cat1on prOV1 ed to the Congress is to be unclassified except that the dollar amount and quantity of the offer and details of the description of the defense articles or services offered may be classified. Furthermore, the justification may also be classified. However, if any of the items are to be classified, the rationale must be provided, fully justified, and the justification attached to the statutory notification data submission (Table 7-IV-3). Supporting data inputs pertaining to statutory notificationswil'l be submitted to DSAA/Compt-FMSCD in accordance with the following classification guidelines:
a. If none of the data presented is classified, the procedures indicated in paragraph 1.a. above are to be followed.
7-118 Change No.7, 15 September 1986
000 SI0S.38-M
TABLE 7-IV-4B
ENHANCEMENT OR UPGRADE OF SENSITIVITY OF TECHNOLOGY OF ITEMS PLANNED TO BE DELIVERED, SECTION 36(b)(S)(A) REPORT
MEMORANDUM FOR (OR LETTER TO) THE COMPTROLLER, DSAA (ATTENTION: FMSCD) (U)
SUBJECT: Enhancement or Upgrade of Sensitivity of Technology of Item(s)
*
Planned to be Delivered, Section 36(b)(S)(A) Report (U) *
1. The following data are provided in accordance with Chapter 7, DOD SI0S.38-M:
A. (*) Purchaser: B. (*) DOD Component: C. (*) Case Designator: D. (*) Section 36(b)(I) Certification Number:
2. A. (*) Description of the manner in which the technology or capability has been enhanced or upgraded, including the significance of such enhancement or upgrade from the level previously described in the original Section 36(b)(I) Certification:
B. (*) Estimated net cost of enhancement or upgrade:
C. (*) Item(s) or service(s) to which change(s) apply (indicate whether MOE):
D. (*) Next planned delivery date of item(s) or service(s):
E. (*) Detailed justification for the sale of such enhancement or upgrade:
Attachment: Copy of original Section 36(b)(I) Notification.
CLASSIFIED BY: (See DOD SI0S.38-M, Chapter 7, Section IV.)
(CLASSIFICATION)
(*) Indicate required security classification paragraph markings per Chapter 7, Section IV.
fABLE 7-IV-4B. Enhancement or Upgrade of Sensitivity of Technology of Items Planned to be Delivered, Section 36(b)(S)(A) Report. *
7-131 Change No.7, IS September 1986
000 5105.38-M
TABLE 7-IV-4C
STATUTORY NOTIFICATION DATA ON ENHANCEMENT OR UPGRADE OF CAPABILITY OR SENSITIVITY OF TECHNOLOGY
(CLASSIFICATION)
MEMORANDUM FOR (OR LETTER TO) THE COMPTROLLER, DSAA (ATTN: FMSCD) (U)
SUBJECT: Data for Statutory Section 36(b)(I) AECA Notification of Enhancement or Upgrade of Capability or Sensitivity of Technology, Section 36(b)(5)(C) (U) *
1. The following supporting data are provided in accordance with Chapter 7, DOD 5105.38-M, regarding items or services that are proposed to be added to a previously notified sale.
A. (*) Prospective Purchaser:
B. (*) DOD Component and Case Designator(s):
C. (*) Original Congressional Notification number and previously notified dollar value:
D. (*) Estimated net cost of enhancement or upgrade of capabil ity or sensitivity of technology:
E. (*) Description and quantity of the items and/or services for which enhancement or upgrade of capability or sensitivity of technology is proposed (which items are being enhanced?): Include all major defense equipment, defense articles or services; or design and construction services, segregating them by dollar values:
F. (*) Descr'iption of enhancement or upgrade of capability or sensitivity of technology (what is being done to provide the enhancement or upgrade?):
G. (*) Expected security classification of the sale of the enhancement or upgrade in capability or sensitivity of technology (if it is to be classified, cite rationale and attach justification):
H. (*) Sales commission, fee, etc., paid, offered, or agreed to be paid on the enhancement or upgrade in capability or sensitivity of technology (if none, so state):
I. (*) Identification and location of the prime contractor or principal contractor of the enhancement or upgrade in capability or sensitivity of technology:
TABLE 7-Iv-4t. Statutory Notification Data on Enhancement or Upgrade of Capability or Sensitivity of Technology.
7-132 Change No.7, 15 September 1986
000 5105.38-M
TABLE 7-IV-6
TRANSMITTAL LETTER FOR THE UNSIGNED LOA
Dear
Enclosed for consideration and analysis by your Government is an unsigned advance copy of the "United States Department of Defense Offer and Acceptance," DO Form 1513, for FMS case (case designator).
Section 36(b) of -the Arms Export Control Act requires that notification be given to the Congress of the United States before the Department of Defense issues any offer to: (1) sell defense articles and services, the estimated total costs of which are $50,000,000 or more, or (2) sell major' defense equipment, the estimated total costs of which are $14,000,000 or more. Section 36(b) further provides that the offer to sell not be issued if the Congress, within ( * ) calendar days after receiving such notification, adopts a joint resolutionstating in effect that it objects to the proposed. sale. * Under the Constitution of the United States, a concurrent resol ution of the Congress does not require Presidential approval and is not subject to veto by the President.
The Department of Defense has transmitted the required notification of the enclosed proposed FMS case (case designator) to the Congress on (date). Assuming that the Congress does not object to this proposed FMS case, enclosed DO Form 1513 will be signed and issued to your Government by the author·ized Department of Defense representative on or about (date). In the event that the Congress should object to this proposed sale, you will be notified prompt-ly of that fact. -
Should your Government wish to accept this proposed FMS case, wait until receipt of the signed DO Form 1513 (forwarded after the Congressional notification period is completed) and complete Blocks 29 through 37 on the original and top three copies of the signed DO Form 1513 only. Completion by your Government of Blocks 29 through 37 on the enclosed unsigned advance copy of the DO Form 1513 will not be deemed to be valid.
Si ncere ly yours,
* For non-exempted purchasers enter: thirty (36) For exempted purchasers enter: fifteen (15)
TABLE 7-IV-6. Transmittal Letter for the Unsigned LOA.
7-135 Change No.7, 15 September 1986
DoD SI05.38-M
/
SECTION V - CASE MANAGEMENT
A. THE SCOPE OF CASE MANAGEMENT.
1. The Mil itary Departments and Agencies will, according to Paragraph 70002H, DOD 7290.3-M, "assign a case manager to each active FMS case. II The FMS case manager is to be des i gnated by the DoD Component respons i b 1 e for implementing sales agreements (DO Form 1513) and leases. The case manager is defined as that individual who is designated to accomplish the task of integrating functional and inter- and intra-organizational efforts directed toward the successful performance of a Foreign Military Sales case.
2. Cases will vary in dollar magnitude and complexity. For example, a $2 billion sale of a major weapon system is extremely complex. A $100 million case for off-the-shelf replacement spares is less complex. While the two are different in complexity and dollar value, they both require 'emphasis and special management attention (even a very low value' case may involve many different functional activities), and both are managed" in accordance with well-defined guidelines.
3. The case manager is the focal point for management activity on a case. The task of the case manager is to ensure the objectives of the assigned case are achieved while adhering to applicable laws and regulations.
4. These objectives are threefold: (1) to accomplish the case (performance) on schedule, (2) to accomplish the case within the case value, and (3) to close the case as planned. Successful performance is realized when the objectives of the case are met.
5. The case manager acts as the focal point for case activities by coordinating and integrating organizational actions and resources assigned to Security Assistance functions. Critical decisions involving managerial prerogatives must be coordinated with the case manager.
6. The case manager has a role in each of the major elements of the case: acquisition, programming, logistics and finance, and shall be involved in every aspect of planning and executing assigned c~ses.
7. The case manager functions as an integrator and a generalist. There are no definite ground rules for determining where the case manager is placed in the organization. This must be decided by the DoD Component responsible for the management of the case. Case management begi ns duri ng P&A and LOA preparation and should include total package concept/total package approach. Each FMS case must be assigned a case manager no later than case implementation.
B. CASE MANAGEMENT AUTHORITY, RESPONSIBILITY, ACCOUNTABILITY, AND CONTROL.
1. The case manager should be guided by existing policies and management directives, and case activities should be governed by these regulatory documents. Direct communications with participating organizations is
7-136 Change No.7, 15 September 1986
000 5105.38-M
(3) DRMS Status. DRMS is an element of the 000. As such, it has absolutely no connection with commercial firms which offer surplus U.S. military supplies and equipment for sale to the general public.
(4) Relation to Other Agreements. The FMS policies and procedures promulgated by DRMS are not intended to repeal or circumvent existing or proposed direct support agreements between other 000 components and foreign governments or international organizations, or any other government-to-government agreements. Where such agreements are in effect, it is expected that the governments concerned will continue to requisition or otherwise procure materiel and services covered by the agreements from the U.S. 000 components with which the agreements have been concluded.
(5) References. The DRMS publishes two documents which provide information on the specifics of the DRMS excess program and on articles which are available for sale.
(a) Foreign Military Sales Customer Information Guide. This document provides information on how to use this service and specifics of the program.
(b) Declared Excess Personal Pro~erty List. This is a weekly listing of excess property publlshed by the DR s. Countries eligible to receive the DRMS Declared Excess Personal Property Lists are identified at Table 8-111-1 of this section.
(6) MOE and SME. All MOE and SME excess items being sold * under FMS procedures must be clearly defined in the LOA. Accordingly, only defined order type cases will be utilized for sales of MOE or SME. *
B. REQUISITION PROCEDURES.
1. Use of MILSTRIP.
a. Standard Items. Once an FMS case has been estab 1 i shed and funded, MILSTRIP requisitions may be initiated either by the purchaser or by a designated 000 component. For standard material items, requisitions will be prepared in MILSTRIP format by the military service, or will be converted to MILSTRIP format by the Military Service Requisition Control Office (RCO). RCOs will verify MILSTRIP requisitions prepared by countries prior to introduction into the U.S. logistics system. Supply and shipment status will be provided in accordance with MILSTRIP procedures. Service ~esignated RCOs are:
(1) Army. U.S. Army Security Assistance Center, New Cumberland, PA 17070.
(2) ~~Vy. Navy International Logistics Control (NAVILCO), Philadelp la, PA 19111.
Office
(3) Air Force. Air Force Logistics Command, Wright-Patterson AFB, Ohio 45433.
8-13 Change No.7, 15 September 1986
DoD 5105.38-M
b. Non-Standard Items. Although purchasers are encouraged to procure material which is standard to'the U.S. Armed Forces, non-standard equipment may be requisitioned after mutual agreement with the DoD component concerned. Such requisitions, as well as requisitions for services (e.g., training, etc.), will be in a letter format rather than under MILSTRIP procedures.
2. Uniform Material Movement Priority System (UMMIPS).
a. Use in Requisitioning Process. The Uniform Military Priority System (UMMIPS), as delineated by DoD Instruction 4410.6, is applicable to all requisitions. Force Activity Designators (FADS) are established by the JCS for all customer countries and international organizations. Component activ~ ities will take the necessary steps to assure that participating foreign countries and international organizations are properly instructed in the establishment of the Issue Priority Designator. SAOs, if they process FMS requisitions, will verify country and international organization established Issue Priority Designators to assure accuracy.
b. Correction of Erroneous Designators. Erroneous designators , will be corrected by the reviewing activity. Doubtful cases will be referred
to the appropriate U.S. or purchaser representative for clarification or ·correction.
3. Delivery Commitment Date (DCD).
a. Use. A DCD will be applied to all FMS cases that include a line for a princTpal item and for which there is no corresponding MILSTRIP Required Availability Date (RAD) in the supply system. The DCO. will be identified through the use of a three digit numeric code, the first two representing the fiscal year, and the third representing the quarter of the fiscal year. The OCO when applicable, should be placed in the Availability and Remarks Block of the LOA. (The DO Form 1513-2 Notice to countries of slippages over 90 days is required on OCO revisions only and not on slippages of items controlled within the M1LSTRIP RAO system.)
b. OCO Slippa~e. In the event it is determined that a slippage in delivery date in excess 0 90 days will occur, but a firm alternative delivery date cannot be established with a reasonable time,a DO Form 1513-2 will be provided to the purchaser deleting the previous delivery date, providing an explanation of the circumstances involved, and containing a statement that an additional DO Form 1513-2 will be provided as soon as the new delivery date has been established.
8-14 Change No.7, 15 September 1986
000 5105.38-M
i. Use of the Defense Transportation System (DTS).
(1) When ReSuired. Exceptions to delivery policy will be noted on the LOA on a case- y-case basis and approved by DSAA Operations with concurrence of OSD/A&L. Procedures for shipment via the DTS are contained in * the Military Traffic Management Regulation and MILSTAMP, 000 4500.32R. Shipment through the DTS to the point indicated for the shipment of the following types of items is authorized on a reimbursable basis with pricing in accordance with 000 7290.3-M:
(a) Hazardous Sensitive Material. Firearms, explosives, lethal chemicals, and when required certain other hazardous material will be moved within the DTS or other U.S./DoD-arranged transportation under U.S./DoD control on a Government Bill of L~ding (GBL). To meet these requirements, the LOA will require, delivery FOB vessel/aircraft, CONUS port of exit delivery term code 8. The onward movement of these items may be effected by purchaserowned or controlled aircraft or purchaser-owned, operated or controlled surface vessels (see para (c) below).
(b) Oversize Air Cargo. Air cargo of such size that the item exceeds commercial capability may be delivered to the overseas port of discharge through the DTS using military aircraft.
(c) Use of 000 Controlled Ports. FMS material which requires exceptional movement procedures, such as sensitive and as required certain hazardous material (as defined in 000 4500.32-R, Vol. 1, Chapter 2, paragraph 12-15 Military Traffic Management Regulation Chapter 226 and Title 49 CFR Part 170-179 and 397, and 000 5100.76M), will be shipped through CONUS water or aerial port facilities controlled by 000. All material entering the DTS must be documented under 000 4500.32-R, Vol. I and Vol. II. This will require that the terms of delivery of the LOA cite as a minimum, delivery FOB Vessel/Aircraft, CONUS Port of Exit Delivery Term Code 8.
j. Classified Shipments.
(1) It is the policy of the United States Government to release classified military information to foreign governments and international organizations, when considerations relating to the foreign policy and military objectives of the U.S. indicate that the national interest will benefit from such action. Such releases must be consistent with the U.S. National Disclosure Policy (NDP).
(2) The United States national interest requires that forei~n recipients of U.S. classified military information and materiel provide substantially the same degree of security protection, to include transmission and transit storage procedures, given to the same information and materiel by the Department of Defense.
(3) Classified shipments of FMS materiel usually will be made within the DTS or by other U.S./DoD-arranged transportation modes which will provide the required security and enable the U.S./DoD to maintain control and custody of the materiel until delivery to the purchaser is made. 000 Directory 5105.38-0 (MAPAD), however, lists certain freight forwarders who have been cleared to receive c1assified materiel which could be shipped FOB origin
8-23 Change No.7, 15 September 1986
000 5105. 38-M
on a Commercial Bill of Lading (CBL). (See Chapter Five for additional security information.)
k. Discharge of FMS Materiel Moving Through the DTS.
(1) The local U.S. military representative is responsible for supervision ,of the discharge at destination of FMS materiel and equipment moving through the DTS. This responsibility includes, but is not limited to:
(a) Making arrangements for reception of the cargo,
(b) Assuring the establishment by the purchaser of adequate procedures for checking the equipment and materiel against manifests and shipping documents,
(c) Providing technical advice regarding proper discharge of cargo, and
(d) Initiating transportation discrepancy actions and documents prescri bed in AR55-28/NAVSUPI NST 4610 .33C/ AFR 75-18/MCO 4610.190, 'DLAR 4500.15, Reporting of Transportation Discrepancies in Shipments.
(2) Where there are U.S. military forces positioned or deployed in areas that are receiving FMS materiel, and where these forces are supported by U.S. Military Terminal Units or Support Activities, arrangements may be initiated by the local U.S. military representative who may designate these units to act as the agent or representative of the local U.S. representative to accomplish the functions incident to the delivery of FMS materiel to the recipient country via the DTS.
(3) If comp 1 i ance with Pa ragraphs k (1) or (2) above is not feasible or possible, the responsible 000 components will amend all agreements for FMS materiel to provide that custody shall pass within CONUS and that transportation support beyond CONUS will be the responsibility of the purchaser.
1. Re-delivery Policy and Use of the DTS.
(1) When a DoD component solicits the buy back of a ,defense item from an FMS purchaser, use of the DTS may be authorized if deemed appropriate by the cognizant 000 component with funding by that 000 component.
(2) When a 000 component is requested by an FMS purchaser to buy back previously purchased defense articles, transportation normally should be arranged and.·funded by the FMS purchaser. Un sol icited buy backs of sensitive, hazardous and classified cargoes may be moved within the DTS, with reimbursement from the FMS customer, if deemed appropriate by the cognizant 000 component.
m. Government Bill of Lading (GBL).
(1) Shipment via GBL is not authorized except when specified in the LOA and approved by the cognizant 000 component as an exception.
8~24 Change No.7, 15 September 1986
000 5105.38-M
(2) When the GBL is used, the 000 retains res pons i bi 1 ity for the associated administration of processing claims against carriers or for obtaining proof of delivery at destination on movements to freight forwarders/ country representatives, military controlled terminals, and commercial ports.
(3) When a GBL is used, the 000 is performing a reimbursable servi ce for the FMS purchaser and custody must not be construed to mean retention of title or acceptance by DoD of the risk of loss or damage.
n. Collect Commercial Bill of Ladin Frei ght Forwar er ountry epresentatlVes. 1 s proce ure norma y Wl e used for FMS shipments on movements to freight forwarders and country representatives. Purchasers will be informed by the 000 component concerned that they are responsible for: (1) acceptance and payment of CCBL shipments made in accordance with DO 1513 terms, (2) providing appropri ate insurance coverage from the point of delivery to the carrier, and (3) in-transit accounting and settlement of claims against carriers. When shipment cannot be effected by collect CBL, due to tariff restrictions, refusal of carriers to accept collect freight shipments, or other reasons, the following are applicable:
(1) Only when the LOA so authorizes may the shipping transportation office guarantee payment of charges on collect CCBLs, or;
(2) The purchaser representative/freight forwarder may be requested to make IIprepaid ll arrangements with the carrier vice IIcollect.1I
3. Responsibilities of the U.S. Government.
a. Initiation of Shipments. The U.S. Government will normally initiate shipments to frelght forwarders, country representatives, or the CONUS Port of Exit in accordance with the transportation instructions inserted on the LOA.
b. Evidence of Shipment. The U.S. Government is required only to provide evidence of shipment. Any movement document or receipt, duly signed by a carrier representative, which shows that the U.S. has shipped or released the materiel in question to a carrier for shipment to the country's designated representati ve, constitutes evi dence of shi pment. Such documents generally show the quantity, national stock number, mode, date, transportation c'ontro 1 number, notice of availabil ity number/bill of lading/parcel post insured or registered number~ addressee, vessel, or flight number (to the extent possible), name of shipper and carrier, etc. This information is essential for adjudication of Reports of Discrepancy (ROD). If the freight forwarder has not received the advance copy of the bill of lading, and proof of delivery to a carrier is requested, a duplicate of the bill of lading or other appropriate documents establishing evidence of shipment will be provided to the customer representative.
c. Proof of Delivery. The term IIproof of deliveryll is construed to mean IIconstructive dellVeryll (tender of the materiel to a designated carrier at point of origin). Establishment of proof of delivery to a country destination ;s not the responsibility of the U.S. Government under a CCBL. The U.S. Government can only provide proof of delivery when movement was
8-25 Change No.7, 15 September 1986
DoD 5105.38-M
effected within the Defense Transportation System or other transportation provided under U.S. Government auspices.
d. Materiel Shipment. Shipment of materiel is made by the U.S. DoD in accordance with the proviSions of the implemented case and delivery term codes therein (including mode of shipment, if specified, and the offer/ release code, at customer expense to the customer representative/freight forwarder deSignated in the MAPAD).
e. Processin~ of Claims. The applicable DoD component will provide necessary sh,pplng information to assist customer representatives/ freight forwarder in processing claims that may arise for lost or damaged shipments in the same manner it processes claims for U.S. Government-owned materiel. On all CCBL shipments, this assistance will be limited to administrative advice and provision of evidence of shipment and constructive delivery to the carrier, when requested by the purchaser representative/freight forwarder. When the discrepancy is determined attributable to the shipper, the Transportation Office that originated the shipment will initiate action to recover reparation for losses, damage, or destruction of property incident to shipment.
f. Liaison Assistance. The DoD components concerned will provide technical assistance ahd guidance to purchaser representative/freight forwarders in order to assist in any manner that will improve the transportation support in the best interests of the FMS program. Such assistance will include, but is not limited to, purchaser representative/freight forwarder orientation in FMS transportation policies and procedures, MAPAD information, MILSTRIP/MILSTAMP documentation, ROD processing, and resolution of specific transportation problems incident to U.S./DoD sponsored shipments. It is emphasized that the DoD components have no intervening authority in resolving purchaser/freight forwarder disputes or problems, nor in prescribing the manner in which freight forwarder activities are managed.
g. Controlled Substances. The export from the U.S. of FMS ** purchased materiel that is a controlled substance or narcotic drug shall be in accordance with the Controlled Substances Import and Export Act, 21 U.S.C. 951 et seq., and the procedures governing the exportation of controlled substances in 21.C.F.R. Part 1312. Prior to each export, the U.S. Military Services shall obtain the necessary import documents from the purchaser as provided by 21 U.S.C. 953(a)(3) and (e)(1). The Services shall submit the import documents to the Administrator of the Drug Enforcement Administration (DEA), Department of Justice, requesting the export permits be issued for the particular controlled substance or narcotic drug •. Upon obtaining the export permit from the DEA, the Services .are responsible for furnishing the Defense Personnel Support Center the export permit number, the expiration date of the export permit, and the port of exportation. This information will accompany the requisition. The Services are also responsible for ensuring that their FMS customers are aware that they must submit import documentation for controlled sUbstance(s) or narcotic drug requiSitions.
4. Res~onSibilities of the Purchaser. When the purchaser request has been establi s ed as a f, rm FMS case by acceptance of an LOA, the fa 11 owi ng management action should be accomplished by the purchaser:
8-26 Change No.7, 15 September 1986
000 5105.38-M
a. Employment of a Freight Forwarder. If not established, the service of an international freight forwarder should be employed to accomplish those actions required to effect movement of FMS materiel to destination. The responsibilities which the purchaser elects to delegate to the freight forwarder should be clearly defined in the contract between the parties, and the action and operations of the freight forwarder, as pertain to the handling of FMS shipments, should be closely managed by purchaser representatives.
b. Receipt, Handling, and Processing of Materiel. These functions are the responsibility of the purchaser and are normally accomplished by the freight forwarder. The purchaser should assure that the freight forwarder has adequate receiving and storage facilities for processing shipments of various configurations for onward movement, with materiel handling equipment required for loading/unloading of commercial carrier conveyances. Specific authorization must be received from the 000 to receive and store classified, hazard-ous, or sensitive materiel. .
c. Export License. The customer must obta.in an Export License from the Department of State to authorize lawful export movement of purchased FMS materiel from the U.S. to the country, whenever the items sold are to be in the custody of a freight forwarder or other non-governmental party. \This must be among the first management actions accomplished in order to assure that materiel is not delayed when ready for shipment. When shipments originate from a third country the purchaser will normally be required to obtain the necessary licenses and export documents.
d. Title Transfer. The U.S. Government normally transfers title to equipment and materiel to the purchaser at the CONUS point of origin where U.S. Government responsibility terminates. Movement from this point onward to the country destination is the responsibility of the purchaser.
e. Ex ort Declaration and Customs Clearance. The purchaser must assure that export ec aratl0n epartmen 0 Commerce Form 7525-V, Shipper's Export Declaration) are prepared for all FMS shipments and that such declarations are filed and validated by a Collector of Customs. After the declaration has been prepared, the shipment must be cleared through U.S. Exit Customs by submission of documents to the Collector of Customs or Export Contro 1 Officers. These actions are normally accompl i shed by the freight forwarder.
f. Transportation. The purchaser is responsible for arranging onward movement of materiel to destination, either by its own government carrier or commercial carrier. Cargo space must be obtained from and the shipment booked with an air or surface commercial carrier, materiel delivered to and loaded aboard the carrier, and applicable ocean bill of lading, air waybill, and/or manifests prepared. These actions are normally accomplished by the freight forwarder.
g. Carrier Selection. It is the purchaser's responsibility to clearly designate to the frelght forwarder the mode of transportation and type of carrier desired for onward movement of materiel. Some purchasers prefer all movement aboard an air or surface carrier of the purchaser's flag registry. However, Public Resolution 17, 46 USC 1241-1, expresses the sense of Congress that export cargo generated as a result of loans made by Federal
8-27 Change No.7, 15 September 1986
DoD 5105.38-M
instrumentalities should be carried in U.S. flag vessels. FMS Loan Agreements, both DoD Direct and Federal Financing Bank (FFB) guaranteed, executed between the United States and foreign governments require that all items financed with these funds shall be shipped on U.S. flag vessels, unless an except i on has been obta i ned by the purchaser from the DSAA or the Ma rit ime Administration of the U.S. Department of Transportation. See Chapter 9 for detailed instructions on Marine Transportation Waiver Procedures. It is the customer's responsibility to notify its freight forwarder of the FMS case identifier related to the LOA utilizing loan funds and of any charges to accepted offers resulting in the use of loan funds, and to ensure that the shipment of materiel under these case identifiers is made on U.S. flag vessels. Cargo not purchased with U.S. loans may be moved utilizing purchaserowned/operated aircraft or vessels when conditions permit this type of delivery (i.e., pilot pick-up by country-owned military aircraft or by naval vessels). In accordance with standard loan terms no loan proceeds may be used to pay ocean or air freight costs of carriage of defense items on vessels or aircraft of non-United States Registry, nor may such standard loan terms be waived. .
h. Overseas Customs Cl earance. Upon recei pt of formal documenta-tion, the purchaser is responsible for effecting overseas customs clearance of all FMS materiel through its customs agencies upon receipt at the aerial or water port of discharge, and for arranging delivery to the appropriate destination.
i. Notice of Avai1abilit~ (NOA). If the authorized offer/release code specifies that the frei ghtorwa rder/country representative will be notified when materiel is ready for shipment, the purchaser will assure that the freight forwarder responds promptly to each NOA requesting shipping instructions. This will preclude undue holding and storage at the point of origin and will facilitate timely and orderly flow of materiel to the freight forwarder. Delays in response to NOA cause storage problems at origins and may result in storage charges to the purchaser.
j. Payment for Transeortati on Services. Many U. S. domesti c carriers qre reluctant to accept shlpments on a commercial collect basis due to difficulty experienced in collecting freight charges, or are prohibited from accepting collect shipments for export due to carrier tariff bureau restrictions. The purchaser will assure that the freight forwarder effects prompt settlement of these freight charge accounts, through payment of charges upon delivery or establishment of credit arrangements with delivering carriers. The purchaser may consider the establishment of a specific address for payment of transportation charges in accordance with DoD 5105.38-D (MAPAD).
k. Follow-Up on Shipping Status. When the materiel manager furnishes shipping status, and materiel has not been received, the purchaser is responsible for conducting its own tracer action. Such action should 'be directed to -the purchaser's freight forwarder to determine if the item has been received. If the item has been received and transshipped by the freight forwarder, it should be traced to the addressee. If the item has not been received by the freight forwarder, a request for shipping information should be sent to the activity from which shipment status was received to ascertain evidence of shipment. That activity will provide a copy of the bill signed by the carrier and all shipping information such as Transportation Control Number
8-28 Change No.7, 15 September 1986
000 5105.38-M
(TCN), bill of lading number, carrier, date of shipment, etc. Further followup should then be made to the freight forwarder to ascertain if the item has, in fact, been received. If the item is still missing, the purchaser should assure that the freight fO~/arder either st&rts tracer action with the carrier to locate the materiel, obtains proof of delivery, or makes a claim against the carrier for loss of the shipment on behalf of the purchaser.
1. Claims for Loss or Damage. The purchaser should assure that the freight forwarder can place claims for loss or damage of FMS materiel while in custody of the carrier, and that the purchaser is credited with an amount recovered. RODs coveri ng shortages (non-recei pt) shoul d be submitted by the purchaser to the freight forwarder for review and response prior to submitting them to the appropriate 000 Component's Security Assistance Organization.
m. Claims Af!ainst the 000 for Incorrect Shipment. The purchaser agrees by acceptance 0 the LOA, to provide complete and timely supporting documentation for claims, if any, against 000 for those alleged improper or in complete shipments which are not the responsibility of commercial carriers.
n. Reparable Return Materiel. All materiel returned to the U.S. Government for repair and return (repair, overhaul, servicing, etc.) should normally be shipped at purchaser expense and handled outside the Defense Transportation System (DTS) unless use of the DTS is authorized on the LOA. Shipments are normally moved through the freight forwarder, who is responsible for clearing the shipment through U.S. Customs and transshipping materiel prepaid to the designated CONUS repair facility. The purchaser should assure that all such reparable shipments are accompanied by appropriate shipping documents and a customs declaration, and that the purchaser's freight forwarder has the capability for receiving and transshipping such materiel.
o. Insurance. Unless a purchaser is self-insured, commercial insurance should be obtained to provide coverage against loss and damage of property, injury to or death of persons, or other transportation risks incurred while the purchaser's property is in custody of the freight forwarder, aboard any carrier, or transiting any port facility. This includes shipment of reparable materiel. It is recommended that any commercial insurance be placed with United States private firms, to the extent possible. Freight forwarders will normally be covered for liability insurance against injury or death of persons. Purchase of separate 1 iabil ity insurance by the customer would be a duplication.
p. Updating Military Assistance Program Address Directory (MAPAD). This is a directory of purchaser representatives and freight forwarder addresses and codes ("Ship to," "Mark for") used by 000 shipping activities. It is essential that the purchaser maintain this directory in current status to assure del ivery"
5. Responsibilities of the Freight Forwarder.
a. General. The services of an international freight forwarder are procured under contract by the purchaser for the purpose of receiving, processing, and transshipping FMS materiel. The purchaser is responsible for negotiating with the freight forwarder for services and for management of the
8-29 Change No.7, 15 September 1986
000 5105.38-M
functions related to handling of FMS materiel. The U.S. Government has no jurisdiction, nor responsibility for, accomplishing these functions. This paragraph lists actions and responsibilities considered by the U.S. Government as essential to provide the purchaser with the most effective transportation support required for delivery of its FMS materiel. Requirement of these services and delegation of responsibility for accomplishment are entirely at the discretion of the purchaser. The freight forwarder should be provided appropriate export and import licenses for all FMS cases for materiel expected to be handled. .
b. Warehousin~ and Storage Facil ities. Adequate warehousing facilities should be ava,lable for segregated receipt, processing, and tem-
. porary storage of materiel from the time of delivery from one carrier until transshipped by another. Suitable materiel handling equipment is required for off-loading, and loading commercial carrier equipment. This is required since most shipments will be offer release coded "A" for automatic release/shipment.
, c. Receipt or Staging of Materiel. When materiel is delivered by
the .commercial carrier, inspectiOn should be made immediately to assure that the number of pieces and identification of materiel corresponds with items ,listed on the shipping documents. If there is shortage, damage, or pilferage, the transportation documentation should be annotated acco~dingly to substantiate claim action against the carrier. If there are discrepancies, hold the materiel in a designated area, pending resolution of claim action. If the shipment checks out with no apparent discrepancy, the carrier will be released and materiel moved to staging area or designated collection point for further processing.
d. Processih~ Materiel for Transshipment. The processing of materiel for onward de ivery should include, but not be limited to, the following:' "
(1) Advance Copies of DO Form 1348-1.
(a) Hold advance copies of DO Form 1348-1 and DO Form 250 in suspense file pending receipt of materiel.
(b) Match the advance copies of DO Form 1348-1/00 Form 250,'or those received after receipt of materiel, with the actual case contract (i.e., items ordered) or with documentation received with the shipment, by TCN/document number, stock number, quantity, case number, "Mark for" address, or any other element of identification that will assure that shipment received, is fully identified with an appropriate FMS case and actually desti.ned for'movement to the purchaser represented.
(2) Discrepancies. Document materiel discrepancies on -Standard For'm 364, Report of Discrepancy (ROD) for submission to the customer representative.
(3) Marking Verification. Examine exterior markings on the shipping containers to ascertain that markings are correGt and adequate to fully identify the shipment upon receipt of the materiel by the requisitioner at the destin~tion.
8-30 Change No.7, 15 September 1986 ,
DoD 5105.38-M
(4) Documentation. Assure that the accompanying documents remain intact in tne Packing List Envelope affixed to the exterior of the containers to facilitate ready identification and processing by the in-country recipient. Appropriate documentation shou~d be prepared for each shipment, i.e., bills of lading, air waybills, air or ocean manifests, customs declaration and clearance documents, or other required documentation.
(5) Shipping Container Adesuacy. Examine all shipping containers for adequacy to withstand handllng, storage, and movement risks incurred for the air or surface over-ocean type of transportation selected.
(6) Recooperage. Repackage, recrate, or reinforce inadequate containers. The freight forwarder should have a recooperage capability in connection with the processing facility for accomplishing these actions. Although an export pack is prescribed for FMS shipments, some shipments may be domestic pack for CONUS delivery only, or small parcel post shipment may not conform with export packaging specifications. Some packages may burst open, be crushed, or weakened due to rough handling but with no apparent damage to contents. When, in the opi n i on of the frei ght forwa rder, the sh i pment wi 11 not withstand further handling and over-ocean movement, it should be repackaged. This is normally a freight forwarder service to provide adequate onward protection to the property, and the purchaser is responsible for any legitimate costs.
(7) Packase Consolidation. Small packages should be consolidated into larger contalners, by case, priority, and final destination, to the extent possible. The new shipping container should have proper markings for identification at destination.
(8) Priority Transportation. Packages marked for priority delivery normally should be air transported.
e. Containerization. Cargo should be loaded in Seavan or Sealand type containers to minimize loss, damage, and pilferage, if the freight forwarder or the purchaser at the overseas port of discharge can offload from containers and forward cargo to its destination. A complete listing of all shipments containerized should be provided.
f. Transportation Arrangements.
(1) Book Cargo Space. Cargo space should be obtained and shipment booked with the selected air or surface carrier.
(2) Delivery to Carrier. Cargo should be delivered to and loaded aboard the air or surface carrier.
(3) Documentation. All movement documentation should be provided upon tender of the shipment to the designated carrier. When materiel has been loaded aboard the carrier, copies of all documentation should be sent to the purchaser as expeditiously as possible.
(4) Sensitive, Hazardous or Classified Materiel. Arrange with all shippers to have customer representative on hand to sign, at the site of
8-31 Change No.7, 15 September 1986
DoD 5105.38-M
or aboard ship or plane,for sensitive, applicable hazardous cargo, or classified cargo that is marked for Delivery Term Codes 3 and 8.
(5) Shipment via U.S. Carrier. Arrange for shipment via U.S. flag vessel when materlel to be shipped has been identified as being funded under a loan arrangement.
g. Customs Clearance.
(1) U.S. Department of Commerce Form 7525-V. Export declaration (U.S. Department of Commerce Form 7525-V, Shipper's Export Declaration) must be prepared for all FMS shipments (except DTS).
(2) Customs Clearance. After the declaration has been prepared, exit customs clearance must be effected by submission of documents to the Collector of Customs or Export Control Of.ficers. Assistance should be rendered to the purchaser in the provision of documentation to effect clearance through the purchaser customs agenci es. Customs cl earance is addressed further in Chapter 5, Section IV, this Manual.
. (3) Bills of Ladinr. The freight forwarder is responsible for
obtaining and submitting bills ofading connected with the export and attending to certain other formalities, such as consular invoices, certificates of origin, and other required documents.
(4) Reporting to Department of Commerce. All export of FMS materiel will be reported to the U.S. Department of Commerce as required by federal statute.
h~ Pa~ment for Transportation Services. When FMS materiel is shipped to the rei ght forwarder on a CCBL, prompt settlement of freight charge accounts should be effected. This should be through payment of charges upon delivery or establishment of credit arrangements with delivering carriers.
i. Claims. The freight forwarder/country representative is responsible for filing claims against commercial carriers on behalf of the purchaser for loss, damage, shortages (non-receipt), and pilferage of materiel while in their custody. The purchaser will be credited with any reparation claim action •
. j. Return of Reparable Materiel. There should be the capability to receiVe materi e 1 returned from the purchaser for repair, overhaul, or servicing, clear it through U.S. Customs, and forward it prepaid to the designated CONUS repair facility. After repair, materiel will be shipped to or through arrangement of freight forwarder in accordance with normal delivery procedures.
k. Insurance. Commercial insurance coverage should be provided for protection of all purchaser-owned F~lS materiel while in custody of the freight forwarder, aboard any carrier, or transmitting any port facil ity unless the purchaser is a self-insurer.
8-32 Change No.7, 15 September 1986
000 5105.38-M
1. Notice of Availability (NOA). If the offer/release code specifies prior notification when materiel is ready for shipment, the freight forwarder should provide expeditious response to each NOA requesting shipping instructions. Any alternate shipping instructions, such as a different carrier mode, shipping address, port or consignee other than that specified in the MAPAD, will be observed. Instructions for holding the materiel until a specified future delivery or until availability of a vessel will not ordinarily be honored, as the 000 shipping activities should not be used as storage facilities for the convenience of freight forwarders or the purchaser. Items held for over 15 days are subject to a U.S. Government storage charge.
m. Tracer Action. Every assistance possible will be provided the purchaser on follow-up tracing of specific materiel shipments. The purchaser should be provided all receipt and transshipment data. If no record of receipt is indicated and the purchaser provides evidence of shipment from the shipping activity, tracer action will be initiated with the carrier and the purchaser informed of findings.
n. ~1ultiple Delivery Addressees. Shipments will be made only to the single address specified in the MAPAD or in the official response to the NOA. Delivery is authorized only to the consignee indicated on the bill of lading. Any further reconsignment, diversion, storage, or other deviation directed by a freight/forwarder that results in additional costs will be at the freight forwarder/purchaser expense.
o. Discrepancy Reporting. The purchaser representative will advise by means of SF Form 364 Report of Discrepancy (ROD) of any discrepant shipments, i.e., misaddressed shipments, erroneous documentation, faulty marking that precludes identification, or any other discrepancy that appears to be the responsibility of the USG. Faulty packaging will be reported with pictures if possible, to accompany the SF 364. The purchaser representatives will take action with the appropriate MILDEP security assistance activity.
p. Pilot Pick-up of Materiel. When the freight forwarder is advised that a purchaser-owned/operated aircraft is scheduled into the CONUS to pick-up purchaser-owned property from the freight forwarder, arrangements should be made with the 000 Aerial POE for loading the purchaser's aircraft. Materie 1 wi 11 be transported at frei ght forwarder expense Free-Al ong-Si de (FAS) the aircraft. Any loading, off-loading, or handling services performed by 000 personnel will be reimbursed by the purchaser. If storage of materiel is necessary prior to loading date/time, off-base storage facil Hies will be required. Under no circumstances will U.S. military facilities or personnel be used for storage and handl i ng of purchaser-owned property, or 1 oadi ng/ unloading of the purchaser aircraft, unless specifically authorized by the applicable Military Department and funding is arranged.
q. Administrative Responsibility. The freight forwarder is responsible for accurate files on all FMS transactions. This includes, but is not limited to, due-in files, advance shipping documents, NOA and response, receiving documents, shipping manifests, bills of lading, customs clearance documents, tracer actions, claims actions, container listings, accurate listings of reimbursable expense, invoices, and other documents or correspondence related to the shipments. Sufficient information should be on file to respond to query of the customer on any shipment.
8-33 Change No.7, 15 September 1986
000 5105.38-M
r. Reporting System. A reporting procedure should be devised by the freight forwarder to keep the purchaser representative advised of the current status of FMS shipments. The system should include advance notice of shipments due-in, receipt of shipment, processing status, anticipated forwarding date, vessel name, voyage number, itinerary, and estimated date of arrival at port of discharge. When shipments identified to a specific case, this will enable the purchaser to plan the receipt in advance and minimize the necessity of tracking individual shipments.
s. Control of Shipments. The freight forwarder should maintain complete visibility control over each FMS shipment, from the date of receipt from the carrier, through processing and staging, until finally shipped to the purchaser. This will provide the location and status of the shipment in the system at all times and facilitates immediate response to any query concerning the materiel. In effect, the freight forwarder acts as a traffic manager for the movement of FMS materiel for the purchaser.
t. Notice of Address Change for MAPAD. This is the only source directive in use by DoD shipping activities to determine current shipping addresses. The frei ght forwarder shoul d immediately advi se the purchaser representative when any address for receipt of materiel or documentation is to
. be changed, preferably 60 days in advance of the change. This \,/i11 enable the purchaser representative to initiate action with Defense Automatic Addressing System Office (DAASO) to have the revised addresses immediately disseminated to shipping activities and published in the MAPAD. Direct requests from the freight forwarder to shipping activities for address changes are not authorized. It is important that address changes be made immediately to keep the MAPAD current and preclude misdirected shipments. .
8-34 Change No.7, 15 September 1986
000 5105.38-M
[This page left blank intentionally.]
8-35 Change No.7, 15 September 1986
DoD 5105.38-M
TABLE 8-1 II-I
FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS AUTHORIZED RECEIPT OF DLA EXCESS PROPERTY LISTINGS
Botswana Djibouti Kenya
Austria Belgium Denmark France
Africa
Europe
Germany (Federal Republic of)
Greece Iceland Ireland Italy Luxembourg
Australia Burma Brunei Indonesia Japan Korea
Far East
Liberia Sudan Zaire
Malta Netherlands Norway Portugal Spain Sweden Switzerland TL!rkey United Ki ngdom Yugoslavia
Malaysia New Zealand Philippines Singapore Taiwan Thailand
International Organizations
COUNTRIES
Near East and South Asia
Bahrain Bangladesh Egypt India I s rae 1 Jordan Kuwait Lebanon Morocco Nepal Oman
Pakistan Qatar Saudi Arabia Sri Lanka
(Ceylon) Tunisia United Arab
Emirates, The Yemen Arab Rep.
Western Hemisphere
Bahamas Barbados Brazi 1 Canada. Colombia Costa Rica Dominica Dominican Rep. Ecudaor Guatemala Haiti
Honduras Jamaica Mexico Panama Paraguay Peru St Lucia St Vincent Trinidad and
Tobago Uruguay Venezuela
NATO (North Atlantic Treaty Organization and its agencies)
TABLE 8-111-1. Foreign Countries and International Organizations Authorized Receipt of DLA Excess Property Listings.
8-37 Change No.7, 15 September 1986
TABLE 8-111-2
POTENTIAL SOURCES FOR LISTING OF FREIGHT FORWARDERS
American Import & Export Bulletin North American Publishing Company 41 East 42nd Street
. ~ew York, New York 10017
Shipping Digest, Inc. 25 Broadway New York, New York 10004
Department of Transportation 400 Seventh -Street SW Washington, DC . 20590
National Customs Brokers & Forwarders of America, Inc.
One World Trade Center, Suite 1109 New York, New York 10048
DoD 5105.38-M
*(del
TABLE 8-111-2. Potential Sources for Listings of Freight Forwarders.
8-38 Change No.7, 15 September 1986
DOD 5105.38-M
(4) The estimated financial consequences of selecting such options.
(5) Any time limits for notifying the U.S. Government of purchaser desire to cancel or reduce quantities.
b. Changes initiated by the foreign country or international organization of terms (Block 27, DD Form 1513 and Block 28, DD Form 1513-1) from a type of assistance code (other than M or Z) to a MAP case (code M) or an FMS Credit Case (Code Z) must cite all types, sources, and amounts of financing.
c. Shifts of case value from one FMS case to another by concurrent modification (reference Chapter 8, Section V, Paragraph A.12), provided the following are met:
(1) The foreign government official who requested the shift in case value must have the level of governmental authority of one authorized to accept LOAs by his signature and must indicate in the LOR that he is a duly authorized representative of his government.
(2) The case increases must be limited to changes which are not significant changes in scope, which would be defined as an increase in quantity of SME or MDE items.
(3) The AECA Section 36(b) reporting thresholds outlined in Chapter 7, Section IV, must be observed.
(4) The net change between the two cases must be zero; that, the increase to one case must be equal to the decrease of the other case. The modifications decreasing one case and increasing the other must be· issued simultaneously and must cross-reference each other.
(5) The case being increased must currently rave collections equal to or greater than expenditures (see Chapter 8, Section V, Paragraph A.W.
(6) If the addition of articles and/or services to the case being increased will generate a requirement for an initial deposit (reference Chapter 8, Section V, Paragraph A.9), a DD Form 1513-1 must be used.
(7) The case being decreased must have adequate funds available to cover outstanding requisitions and obligations.
4. DD Form 1513-2 1 s Requiring No DSAA Coordination or Countersignature.
a. Decreases to the value of DD 1513s or 1513-1s resulting from price reductions, deletions, or decreases in the quantitites of articles or services to be sold, or decreases in the value of blanket order cases requested by the foreign government may be accomplished by DD 1513-2s which do not require countersignature.
b. The following additional modifications to a Letter of Offer or Amendment must be made on a DD 1513-2, but do not require DSAA coordination or
8-55 Change No.7, 15 September 1986
DOD 5105.38-M
countersignature provided there is no change in the IIterms of sale ll or increase in the IItotal estimated costsll:
(1) Changes or extensions exceeding 90 days of the delivery commitment date.
(2) Extensions of the ordering period for a blanket order type case.
(3) Changes to transportation codes due to the requirement to use the DTS (e.g., shipment of hazardous or sensitive cargo).
(4) Clarifying notes.
(5) Changes in payment schedules to LOAs or Amendments.
(6) Changes in Generic Codes and/or MASL Coding to correct an administrative error only; there should be no change to the description of articles or services to be sold.
5. Price Changes During Case Closure. Price increases or decreases discovered during case closure will be assessed the country during final billing if a closure certificate can be provided to the SAAC within six months * of the supply completion date. When case closure certification will take more * than six months from the supply completion date and the estimated final cost * is expected to vary (increase or decrease) from the current case value by * $500,000 or 10 percent (whichever is less) a DO Form 1513-2 adjusting the case * value is required. *
,6. General Terms and Conditions. For record purposes, all DO Forms 1513-2 will have appended to them a copy of Annex A, General Conditions, which are part of the original case. Alternatively, at the discretion of the originating office, the DO Form 1513-2 may contain the following note:
IIExcept as expressly amended hereby, all terms and conditions of the subject case (including without limitations the General Conditions) continue in full force and effect.1I
7. Identification of Percenta e Rate for Certain Costs. The percentage rates use or etermlnlng pac lng~ cratlng an an lng costs, general administrative costs, and supply support arrangement costs and other accessorial costs should not be indicated in the applicable blocks of the DO 1513-2. This guidance also pertains to 1I0ther Estimated Costs ll (Block 20) should a percentage rate be applicable.
8. Use of DO Form 1513-2 vs DO Form 1513-1. If there is any doubt as to whether to use the Db Form 1513, DD Form 1513-1 or the DD Form 1513-2 in a particular case, that case should be promptly referred to DSAA Operations for determination. [Note: When a DO Form 1513-2 is signed for dispatch, appropriate change card(s) should be submitted to the SAAC by the DSAA for inclusion in the 1200 System.]
9. Detailed Instructions and Format. See detailed instructions on the filling in of the blocks on the DD Form 1513-2 at Figure 8-V-2.
NOT~. n.~ Amc.&lmcu' lu Olin "' .. ,' W I,uphd 00011..,., lb~ \h, dill •• t.uwn u. blu,1o. If. WUtUIi 'h. (6) d.~ u'ILe e.cccpt..nc., "",u muu au noUr,. 11,,. 01l1c .... 1 lb. <':ulU"uulJar. USAA. Ulb .... UoII,'flU Alllnl411ani I .. 011,,'1 c ... ::.Ucd ... 4 ,."ull"l1 ur InUl&.! d ..... ."l br "Hcre. 5'aQCUAI ""-PUalUUO
j';W'i)E$'i:'Rj'":oN'iHb'R~isrFoR""~rHbg£~T7' M ..... "'I !uump. nullhceuuo II thy Mil" H "I'Sl5d
ITtM
v" Ih.M Ot.:iCRIPTION UNIT Ht:t-. 0115,,",.110. :ilyC". H .... IIc,. OF NO. IIoII'p/,,"uO", OUNmTY ISSV[ II:JI n41 06) 118)
1211 E:iTIMATfO COST
11:.11 ESTIMATtO PACIC.ING. CRATING. AND HANDLING COSTS
1:t41 t.SrlMATtO GENERAL ADMINISTRATIVE COSTS
I"J~I I;:';TIMATtO C"AROtS fOR SUI"Pl Y SUJ'J'OHT ARRANGEMENT •
1161 UlHt:H. ESTIMATED COSTS 1:iIU"I/r1
I"JIJ t.srU,4ATt:U TOTAL COSTS
,Jtll TEAMS
eSTIMATeD
UNIT COST TOTAL COST 1111 tl81
ltil' PREVIOVS COST
ACCEPTANCE OF AMENOMENT
AVAILA. OfFEM DE· 81L1TV RE· UVERY
AND LfASf TERM REMARKS COOf CODE
lUll laOI (au
fOJ AMENDED COST
12~1 I .. n. tJ .. l", .... lnOl .. .o f~, ... n"'l,v • ." In. Cov""tnan. ol ______________ eDa ",pun ben ... 0' .. 10 Go".,orn.nl.
FIGURE 8-V-1.
PREv,OUS EDITIONS MAY BE USED UNTIL iXHAV:Ht.O OF
United States Department of Defense Amendment to Offer and Acceptance (DO Form 1513-1).
8-57 Change No.7, 15 September 1986
DOD 5105.38-M
INSTRUCTIONS FOR PREPARING THE UNITED STATES DEPARTMENT OF DEFENSE AMENDMENT TO OFFER AND ACCEPTANCE (DO FORM 1513-1)
A. BLOCK (1) PURCHASER. 1. For a country, enter "Government of (name of country) II and show the
office and address of the purchaser's activity designated to receive the LOA (e.g., Defense Attache, 1111 24th Street, N.W., Washington, D.C. 20301).
2. For an international organization, enter the title of the organization along with the appropriate office and address.
B. BLOCK (2) PURCHASER'S REFERENCE. A reference 'will always be shown. The reference may be a letter, telegram, conference, meeting, oral request, etc. The reference will always include any pertinent data (e.g., letter serial, number, message date time group (DTG). In the event that the reference is from other than the purchaser, delete the word- "Purchaser" and. indicate the source of the request.
C. BLOCK (3) AMENDMENT NUMBER. Enter a consecutive "numerical" amendment number. Do not reuse a number once it has been assiqned to an Offer to Amend. When ah offer is allowed to expire and ~ subsequeni amendment is issued, it will be annotated to show that the preceding amendment was not accepted by the purchaser.
imple-
E. BLOCK (5) SIGNATURE. This block should be filled in by an authorized U.S. Military Department or Defense Agency representative prior to forwarding the amendment to the DSAA Comptroller for the required countersignature.
F. BLOCK (6) TYPED NAME AND TITLE. Type or stamp the name and titl e of the U.S. representative who signed Block (5).
G. BLOCK (7) ADDRESS. Enter the name of the issuing organization along with the address (e.g., OA, DCAS-SA, Pentagon, Washingttin, D.C. 20150).
H. BLOCK ~8) DATE. Enter the day, month and year that the Amendment is submitted to t e OsAA for countersignature.
1. BLOCK (9) THIS OFFER EXPIRES. Enter the appropriate date, normally 85 days from the date in Block (8).
J. BLOCK (10) COUNTERSIGNATURE. The authorized representative for countersignature within the OsAA Comptroller will sign ·all DO 1513-1s within this block except as specifically exempted in Chapter 8. Signature will not occur unless all the necessary information is contained on the DO Form 1513-1 and all required attachments are furnished. Amendments exempted from countersig- * nature should contain the following implementing agency entry: "Not Required: * SAMM, Chapter 8, Section V, Paragraph A.2. Date Reviewed (Enter Date)." *
FIGURE 8-V-l. (Contlnued)
8-58 Change No.7, 15 September 1986
DOD 5105.38-M
K. BLOCK (11) TYPED NAME AND TITLE. Type the name and title of the DSAA Comptroller authorized representative for countersignature who signed BloCk (10). "
L. BLOCK (12) PURPOSE OF THE AMENDMENT. Describe the purpose of the amendment (e.g., to add a new line and adjust costs accordingly). Enter the acceptance dat~ of the basic LOA being amended. Do not rely on this block for any required amendment action. Details must be entered in Blocks (13) through (21).
M. BLOCK (13) ITEM OR REFERENCE NO. Enter reference to a specific part of the basic case or previous amendment (e.g., Item 1, Atch 2, basic; Item i, Block (19), Amendment 2).
N. BLOCKS (14) THROUGH (19). Enter complete description of am~nded items. Describe whether the action is an addition, modification, or deletion. If there is a cost change, also enter the amount of increase or decrease. If a previous offer to amend has expired, explain and indicate that an affect on cost does not apply to the amendment being processed. Do not make such entries for unaccepted (and unexpired) offers to amend.
O. BLOCKS (20) AND (21) OFFER AND RELEASE CODE AND DELIVERY TERM CODE. Fill in as appro-priate in accordance with the lnstructions contained in Chapter 7'~ Section II, Table 7-11-2.
P. BLOCKS (22) THROUGH (27).
1. In column (a), enter complete information from the previous accepted document (DO Form 1513 or DO Form 1513-1). In column (b) enter new costs.
2. Care should be taken when computing entries in Blocks 23 through 26 that administrative and accessorial charges are applied only to the appropriate items. If the administrative or accessorial charges are revised, do not show the percentage rate used in determining the cost contained in the applicable block.
Q. BLOCK (28) TERMS. Enter the original terms of sale or any changes thereto., In all cases where 000 direct or guaranteed FMS credit or MAP funding is used, insert the Fiscal Year of the FMS credit or MAP program followed by the words FMS Credit or MAP Merger as appropriate. If the sales agreement is to be financed by a combination of sources, each term of sale and applicable amount will be cited.
R. BLOCKS (29) THROUGH (32). These blocks should be filled in' by the purchaser. Signed copies of the -,DO Form 1513-1 must be returned inbrder to complete acceptance. If terms remain, or are changed to "Cash with' Acceptance 'l an appropriate payment must be received with the completed documents. '
FIGURE 8-V-l. (Continued)
8-59 Change No.7, 15 September 1986
DOD 5105.38-M
. NOTE THE FOLLOWING INFORMATION BEFORE SUBMISSION OF THtS AMENDMENT FOR COUNTERSIGNATURE
1. The DSAA Comptroller (FMS Control Division) is the point of entry with; n DSAA for coordinati on and counters i gnature of LOAs, LOIs (and amendments thereto), and notices to LOAs. In connection with the countersignature process, DSAA coordination will be accomplished by DSAA-OPS. See Chapter 7, Section II, Paragraphs C.9 and C.10.
2. Submit for countersignature to the DSAA Comptroller (FMS Control Division) all DD 1513-1s, except as specifically exempted in this section, with the original and two copies (three copies for FMS credit or MAP financed cases).
3. Atta~h a Financial Annex to all DO Forms 1513-1 except FMSO I. cases, which result in changes to the payment schedule.
4. Indicate the date of acceptance of the basic case. (The acceptance date is the date the DO Form 1513 is signed by the customer representative). The acceptance date should be conspicuously annotated in the upper right hand corner of Block 12, Description and Reason(s) for Amendment. (Example: "Basic Case accepted 25 Aug 1980").
5. Before notifying the customer of a change to cost or increase in scope prior to acceptance, obtain approval from DSAA/Operations.
6. Whenever a DD Form 1513-1 increases the origfnal case value by more than $50,000, the DO Form 1513-1 will be treated as a new case. Therefore, the DD Form 1513-1 information must be entered in the Letter of Request (LOR) system (in the same way the information was entered for the original DD Form 1513) •
7. Attach a termination liability worksheet for each case of $7 million or more that meets the criteria in Chapter 7, Section II, para C.8.c.(2).
8. Attach a financial analysis worksheet for each line item (end-items or services) with a total case value of $14 million or more, or as required. (Reference Chapter 7, Section II, Para C.8.c.(1)(b).
'9. Amendments to Letters of Offer reported to the Congress [Sec. 36(b) AECA] will include below Block 11 the latest identifying DSAA Transmittal Number used in the Statutory Notification (e.g., 85-29).
10. The name and telephone number of the action officer responsible for the preparati on of the DD Form 1513-1 shoul d appear at the bottom of a 11 copies submitted to the.DSAA for countersignature, excluding the original.
FIGURE 8-V-I. (Continued)
8-60 Change No.7, 15 September 1986
DOD 5105.38-M
INSTRUCTIONS FOR PREPARING THE UNITED STATES DEPARTMENT OF DEFENSE NOTICE OF MODIFICATION OF OFFER AND ACCEPTANCE (DO FORM 1513-2)
A. BLOCK (1) PURCHASER
1. For a country, enter "Government of (name of country)" and show the office and address of the purchaser's activity designated to receive the Note of Modification of Offer and Acceptance (e.g., Defense Attache, 1111 24th Street, N.W., Washington, D.C. 20301).
2. For an international organization, eriter the title of the organization along with the appropriate office and address.
B. BLOCK (2) PURCHASER'S REFERENCE. A reference will be shown when appropriate. A reference may be a· letter, telegram, conference, meeting, oral request, etc. The reference will always include a date and any other pertinent data.
C. BLOCK (3) NOTICE NO. Use numbers in consecutive sequence. Do not mix Notice Numbers with Amendment Numbers. Number of Amendments (DO Form 1513-1) and Notices (DO Form 1513-2) are independent, thus a possible sequence of events mi ght be: (1) Letter of Offer, (2) Not ice 1, (3) Amendment 1, (4) Notice 2, (5) Amendment 2.
D. BLOCK (4) CASE IDENTIFIER. Enter the appropriate country or international organization code, implementing agency code and case designator (e.g., UK-P-DLG).
E. BLOCK (5) SIGNATURE. Type or stamp name and title of the U,S L representative. Authorized representative should also sign this block.
G. BLOCK 7) ADDRESS. Enter the name of the issuing organization along with the , DCAS-SA, Pentagon, Washington, D.C. 20150).
H. BLOCK (8) DATE. Enter day, month and year.
I. BLOCK (9) COUNTERSIGNATURE. The authori zed representati ve for countersignature within the DSAA Comptroller will sign all 1513-2s within this block except as specifically exempted in this chapter. Signature will not occur unless all necessary information is contained on the DO 1513-2 and all required attachments are furnished. Modifications exempted from counter- * signature should contain the following implementing agency entry: "Not * Required: SAMM, Chapter 8, Section V, Paragraph C.4. Date Reviewed (Enter * Date)." *
FIGURE 8-V-Z. (Continued)
8-63 Change No.7, 15 September 1986
,. DOD 5105.38-M
J.. BLOCK (10) .TYPED NAME AND TITLE. Type the name and title of the DSAA Comptroller authorized representative for countersignature who signed Block (9) •
K. BLOCK (11) DESCRIPTION OF AND REASONS FOR MODIFICATION. Describe bri~fly the modification(s} and the reason(s} requiring that such modification{s) be made. Such information should be sufficiently clear, complete and specific that it could reasonably be anticipated to satisfy the customer without recourse to further correspondence. (These remarks may be continued on the reverse of the DO Form 1513-2, under Box 26, Continuation). Enter the acceptance date of LOA or amendment being revised. In all cases where DoD direct or guaranteed FMS credit or MAP funding is being used, insert the Fiscal Year of'the FMS credit or MAP program followed by the words FMS Credit or MAP Merger as appropriate. If the sales agreement is financed by a combination of sources, each term of sale and applicable amount will be cited.
L. BLOCK (12) ITEM OR REFERENCE NUMBER. Enter reference to a specific part of the basic case or previous amendment.
M. BLOCKS (13) THROUGH (18). List only the items modified. Show dollar amounts in whole dollars only~ For all notifications of price changes enter the previous cost along with. the revised cost.
N. BLOCKS (19) THROUGH (24). Enter in Column "a" the previous applicable costs from the origina I offer and acceptance or prior amendments and/or notices of modifications thereto for the applicable cost lines. The. best estimate of the revised costs should then be entered in Column "b".· If the administrative or accessorial costs change, do not indicate the percentage rate used to determine the costs conditioned in the applicable block.
O. BLOCKS (25) THROUGH (28) ACKNOWLEDGEMENT OF RECEIPT. An authorized official of the foreign purchaser should sign and forward the document to the Military Department or Defense Agency concerned to ensure that the Notice of Modification has been received.
NOTE THE FOLLOWING INFORMATION BEFORE SUBMISSION OF LOA FOR COUNTERSIGNATURE
(See paragraph C.4. of this section for those 1513-2 actions exempt from countersignature requirement)
1. The DSAA Comptroller (FMS Control Division) is the point of entry within DSAA for coordination and countersignature of LOAs, LOIs (and amendments thereto), and notices to LOAs. In connection with the countersignature process, DSAA coordination will be accomplished by DSAA-OPS. See Chapter 7, Section II, Paragraphs C.g. and C.10 •
. 2. Submit for countersignature to the DSAA Comptroller (FMS Control Division) all DD 1513-2s, except as specifically exempted in this chapter, with the original and two copies (three copies for FMS credit or MAP cases).
FIGURE 8-V-2. (Continued)
8-64 Change No.7, 15 September 1986
DOD 5105.38-M
3. Attach a Financial Annex to all DO Forms 1513-2 except FMSO I cases, which result in changes to the payment schedule.
4. Indicate the date of acceptance of the basic case. (The acceptance date is the date the DO Form 1513 is signed by the customer representative.) The acceptance date should be conspicuously annotated in the upper right hand corner of Block 8, Description of and Reason(s) for Modification. Example:
"Basic Case accepted 25 Aug 1980". This date is important to determine the fiscal year to which the change is applicable.
5. The name and telephone number of the action officer responsible for the preparation of the DO Form 1513-2 should appear at the bottom of all copies submitted to the DSAA for countersignature, excluding the original.
6. Modifications to Letters of Offer reported to the Congress [Section 36(b) AECA] will include below Block (11) the latest identifying DSAA transmittal number used in the statutory notification (e.g., 85-29).
FIGURE 8-V-2. (Continued)
8-65 Change No.7, 15 September 1986
DOD 5105.38-~1
CHAPTER NINE FMS DIRECT CREDIT AND GUARANTEED LOAN FINANCING
SECTION I - GENERAL
A. PURPOSE. This chapter presents the Foreign Military Sales (FMS) direct credit and guaranteed loan financing management policies and procedures. It describes the types of loans currently issued to foreign governments to fi nance such sa 1 es, the s tanda rds and cri teri a app 1 i cab 1 e thereto, and the procedures for implementing the FMS credit program. Thi s chapter does not cover the use of Grant Aid (MAP) funding such as authorized by the FAA, Section 503(a)(3) (use of MAP funds to finance FMS) and the FAA, Section 506(a) (special authority), subjects which are covered in Chapter 11.
B. INTRODUCTION. Foreign Military Sales (FMS) direct credit and guaranteed loan financing has continued to grow in scope and direction. Concurrently, the management of such financing has become correspondingly complex. There are a number of stipulations, limits, actions and responsibilities involved in various aspects of this management that reflect variations in international relations and U.S. foreign policy. This chapter examines those aspects and their legislated guidelines.
C. ARMS EXPORT CONTROL ACT (AECA) AUTHORIZATION. The Arms Export Control Act (AEtA), as amended, provides authority for FMS direct credit and guaranteed loan financing as follows:
1. Credit Sales. Section 23 of the AECA authorizes the President to finance procurements of defense articles, defense services, and design and construction services by friendly foreign countries and international organizations. Loans financed under the authority of Section 23 are commonly called direct loans. Historically, this type of loan financing has been used to assist those FMS countries in the process of economic development. Direct loans require that funds be appropriated by the Congress in an amount equal to the principal loan values. Direct loans are currently used as the vehicle for implementing "repayment waived" loans as authorized by the Congress.
2. Guaranties. Section 24 of the AECAauthorizes the President to guarantee any individual, corporation, partnership, or other juridical entity doing business in the United States [excluding United States Government agencies other than the Federal Financing Bank) against political and credit risks of nonpayment arising out of their financing of credit sales of defense articles, defense services, and design and construction services to friendly countries and international organizations. Loans financed under authority of Section 24 are commonly called guaranteed loans. Fees are charged for the guaranties and all guaranties are backed by the full faith and credit of the United States. Section 25(a)(7) of the AECA prescribes that the President must advise the Congress of the total amount of funds in the Guaranty Reserve at the end of each fiscal year. Additionally, the President must provide an assessment of the adequacy of guaranty reserve funds to make payment of claims under guaranties issued in view of the current debt servicing capacity of
9-1 Change No.7, 15 September 1986
DOD 5105.38-M
borrowing countries. Guarante~d loan financing constitutes the major portion of the current FMS credit program. Since 1975 all guaranteed loans have been issued to eligible borrowing countries by the Federal Financing Bank, an instrumentality of the Department of the Treasury. Such loans are guaranteed by the DSAA against all political and credit risks of nonpayment.
D. ADDITIONAL PROVISIONS OF THE ACT. In addition to Sections 23 and 24, the AECA addresses the purposes of FMS and the use of credits and guaranties in numerous other sections of the AECA as follows:
I
1. Pur oses for which Militar Sales b According to ectlon 0 tee ense artlc to friendly countries as follows: (1) for internal security, (2) for legitimate self-defense, (3) to permit the recipient country to participate in regional or collective arrangements consistent with the Charter of the United Nations or as requested by the United Nations to maintain or restore international peace and security, and (4) for the purposes of enabling foreign military forces in less developed friendly countries to construct public works and to engage in other activities helpful to economic and social development.
2. Violations. Section 3(c)(I)(A) of the AECA requires that no credits (including participation in credits) may be issued and no guaranties may be extended for any foreign country if such country uses the defense articles or services in substantial violation of an agreement under Section 4 of the AECA (as noted in paragraph 1. above), transfers the articles or services without the consent of the President, or fails to maintain the security of the articles or services. Also, according to Sec. 3(f) of the AECA and Sec. 620A of * the FAA, the President shall terminate all sales, credits, and guaranties to * any government which aids or abets, by granting sanctuary from prosecution to any individual or group which has committed an act of internationai terrorism unless the President finds that national security requires otherwise.
3. Prohibition Against Discrimination. Section 5 of the AECA concerns prohibition agalnst discrimwation. No sales should be made and no credits (including participation in credits) or guaranties extended to or for any foreign country which through its laws, regulations, official policies, or governmental practices prevents any U.S. person from participating in the furnishing of defense articles or services on the basis of race, religion, national origin, or sex.
4. Foreign Intimidation and Harassment of Individuals in the U.S. Section 6 of theAECA concerns foreign intlmldation and harassment of individuals .intheU.S. No credits or guaranties may be extended to any country determined by the President to be engaged in a consistent pattern of acts of intimidation or harassment directed against individuals in the U.S.
5. Prohibition Against Certain Militar~ Export Financing by ExportImport Bank. Section 310f the AEeA specifical y prohibits Export-Import Bank financing of defense articles or services to economically less developed countries. .
6. Authorization and A~*regate ceilin~ on Foreign Military Sales Credits. Section 31 of the AE establishes t e authorization and aggregate ceiling on FMS credits. For example, Section 31 normally indicates the
9-2 Change No.7, 15 September 1986
DOD 5105.38-M
(20) Pricing comparisons are being performed on a selective basis as part of the contract review process. When prices are discovered which appear to be unjustifiably excessive in comparison to DOD FMS or commercial prices, the purchaser will be notified. The objective is to maximize the benefits of limited FMS funds; however, it is recognized that certain circumstances, especially delivery schedules, may justify paying higher prices. Unjustifiably excessive prices may be cause for disapproval of FMS loan financing.
(21) It is extremely important to emphasize the requirement that the purchaser provide prior notification to DSAA of their acquisition plans. The form at Table 9-III-8 should be used for this purpose. A completed form should be submitted for each requirement for which the purchaser anticipates making a direct commercial purchase with FMS loan funding. The identification of requirements should be provided as far in advance as possible (preferably 60 days) before solicitation of bids or initiatioh of contract negotiations. This will allow the DOD sufficient time to evaluate the proposed acquisition and seek any required clarification prior to solicitation.
(a) While the DSAA does not desire to delay the procurement of defense materiel, early identification of prospective purchases through direct commercial contracts is necessary. If prior notification is not provi ded to the DSAA pri or to submi ss i on of contracts, it may resul tin contract review being delayed or contracts being r~turned without review.
(b) Additionally, it is highly recommended that, whenever possible, several U.S. manufacturers be contacted by the purchaser for solicitation of bids to meet its specific needs. When the purchaser has made a selection and a direct commercial contract ;s submitted to DSAA for FMS loan financing review, by separatp. letter the purchaser should identify the various contractors solicited as well as the basis for selection. If the contract was not competitive and the firm was selected on a sole source basis, the reqsons for such selection should be provided when the contract is submitted for revie\<l. If this information is not provided, the contract review will be delayed pending verification of the use of competitive contracting •.
b. These guidelines are additive to the requirements contained in FMS loan agreements. Contracts and supporting documentation should be submitted to:
directed to:
Defense Security Assistance Agency ATTN: FRCPD 1400 Wilson Boulevard Suite 535 Arlington, Virginia 22209
Questions concerning these policies and procedures should be
DSAA Operations Management Division (DSAA/OPS-E) The Pentagon Washington, D.C. 20301
2. Documents and Statements. Requests for payment of FMS loan funds to U.S. commercial suppliers must be accompanied by certain documents/statements
9-15 Change No.7, 15 September 1986
DOD 5105.38-M
as set forth in the Annexes and Attachments to each FMS loan agreement. These supporting documents must be provided to the DSAA by the borrower, and not by the commercial supplier.
J. OFFSHORE PROCUREMENT (aSp).
L Statutor~ Requirement. Section 42(c) of the AECA provides that "funds made availa le under this AECA may be used for procurement outside the United States only if the President determines that such procurement will not result in adverse effects upon the economy of the United States or the industrial mobilization base, with special reference to any areas of labor surplus or to the net position of the United States in its balance of payments with the rest of the world, which outweigh the economic or other advantages to the United States of less costly procurement outside the United States."
2. asp Determinations. The authority for issuance of asp determinations has been delegated to the Director of DSAA with concurrence of the Departments of State and Treasury. The granting of such determinations has historically been infrequent. DODD 2125.1 outlines asp procedures when * non-merged MAP funds are involved (See Chapter 11, Section I, Para. A.l.e.) *
K. REPAYMENTS OF FMS LOANS.
1. Paxment Due Dates. Repayments on FMS loans are due on or before the dates specifled in the promissory notes and are repeated in both the FFB and the DSAA billing statements.
2. Extensions. Repayments falling due on a Saturday, Sunday, holiday or other day on which the Federal Reserve Bank (FRS) of New York is not open for business, shall be made on the first business day thereafter. Such extension of time is included in computing interest in connection with such payment, but excluded from the next interest period.
3. Late Repayments. If the borrower fails to make a repayment when due, the amount payable is the overdue installment of principal or interest, plus interest thereon at the rate specified in the promissory note from the due date to the date of actual payment.
4. Repayments Overdue More than One Year. Overdue repayments which * continue in arrears for more than one year are subject to the sanctions of the * "Brooke Amendment" which is an integral part of each recent foreign assistance appropriation act and related programs appropriations act and continuing resolution. The Amendment states:
No part of any appropriation contained in this Act shall be used to furnish assistance to any country which is in default during a period in excess of one calendar year in payment to the United States of principal or interest on any loan made to such country by the United States pursuant to a program for which funds are appropriated under this Act.
Although the provision specifically states only USG foreign aid funds which are appropriated, are affected, Section 24(c) AECA has the practical effect of making the Brooke Amendment applicable to FMS guarantied loans as well. Consequently, Brooke Amendment sanctions are activated by arrearages of more than a year on either aid-financed or FMS-fi~anced loans (direct and guaranteed).
9-16 Change No.7, 15 September 1986
DOD 5105.38-M
Once invoked, the restrictions apply to most U.S.-funded foreign aid programs (economic and military).
issued.
a. Specific sanctions under the Brooke Amendmert are as follows: ** (1) New loan agreements or guaranties cannot be offered or **
(2) FMS Letters of Offer (LOAs) financed with FMS Credit ** (FMSCR) or Military Assistance Program (MAP) funds that were or may be accepted by a country on or after the effective date of the sanction will not be implemented. .
(3) New or pending FMSCR or MAP fi nanced LOAs wi 11 flot be ** countersigned or issued to the country for acceptance.
(4) MOdificatl'nns to existing implemented FMS cases are ** allowed as long as commitment of previously uncommitted FMSCR or MAP funds is not required.
(5) New IMET students may not travel to the U.S. or other ** locations for initiation of training. IMET students presently in training on the effective date of the sanctions may complete courses in which they are currently enrolled. Such students may not enter sequential courses and should normally be returned to their home country as soon as possible after termination of enrollment.
(6) IMET funded Mobile Training Teams (MTTs) and Language ** Training Detachments (LTDs) may not be dispatched or extended beyond their scheduled tetmination date.
(7) IMET funded training aids may not be issued from supply ** nor placed on contract by the supplying agency.
(8) The foregoing sanctions remain in effect until payment is ** received or a bilateral debt rescheduling agreement is signed by both the country and the U.S. Government. All concerned will be advised by DSAA of a change in status of sanctions.
b. Cash FMS purchases are not subject to Brooke sanctions. Cash ** payments from national funds may be used to sustain existing FMS cases or fund new cases since available credit or MAP funds cannot be committed. However, in most instances it is preferred that a country under the Brooke Amendment use its available national funds to eliminate the arrearage rather than undertake new programs. FMS credits or MAP funds committed to LOAs accepted before the imposition of Brooke remain available to pay implemented FMS cases citing such funds.
c. Pipeline deliveries on materiel blanket open-ended cases imple- ** mented prior to the effective date of Brooke sanctions are allowed to continue regardless of term.
d. Requisitions on materiel blanket open-ended cases may be ** processed.
9-17 Change No.7, 15 September 1986
DOD 5105.38-M
5. DSAA Role as Guarantor of FFB Loans. Overdue repayments on FFB (guaranteed) loans which remain unpaid ten days after the payment due-date are paid by the DSAA from its Guaranty Reserve Fund. This action does not in any way relieve the borrowing country from its obligation to repay--interest continues to accrue on the overdue amount until the repayment is received from the borrowing country.
[This space left .blank intentionally.]
9-17.1 Change No.7, 15 September 1986
DOD 5105.38-M
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9-17.2 Change No.7, 15 September 1986
TABLE 9-III-1
DOD GUARANTEED LOAN AGREEMENT ISSUED BY THE FEDERAL FINANCING BANK
LOAN AGREEMENT
DOD 5105.38-M
LOAN AGREEMENT made and entered into as of the day of between the ("Borrower") and the Federal Financing Bank ("FFB")-.--
~mEREAS, The Borrower desires to enter into purchase contracts ("Purcha se Arrangements") with Mil itary Departments and Agencies of the United States Department of Defense ("000"), various United States commercial suppliers, or both of them for the purchase of defense articles and defense services of United States Origin (with regard to articles and services financed hereunder, hereinafter co 11 ect i vely referred to as "Defense Items"); and
WHEREAS, the Borrower has requested a loan from the FFB to fi nance payments required to be made by the Borrower under the Purchase Arrangements; and
~mEREAS, it has been determined by the Defense Security Assistance Agency ("DSAA") of the 000 that the aforesaid requested loan will facilitate the purposes of the Arms Export Control Act, as amended ("AECA").
NOW, THEREFORE, in consideration of the premises and of the mutual covenants hereinafter set forth, the parties hereto agree as follows:
SECTION 1. COMMITMENT 1.1 Subject to the terms and conditions of this Loan Agreement (IIAgree
ment"), the FFB agrees to make advances to the Borrower from time to time the date of this Agreement to and including in an aggreqate principal amount not to exceed (U.S. $), the obligation of the FFB under this section being hereinafter called the "Commitmentll.
1.2 The Commitment shall be used only to procure Defense Items purchased under Purchase Arrangements approved by the DSAA for thi s purpose. The current OSAA procedures for obtaining this approval are, without being incorporated herein, attached hereto as Exhibit A.
1.3 Before requesting any advance hereunder, the Borrower shall execute and deliver to the FFB a promissory note ("Note") substantially in the form attached hereto as Annex I.
1.4 (a) Each advance hereunder shall be made upon thl' delivery to the FFB of a 1 etter request from the Borrower, and a certifi cate from the DSAA approving the requested advance. The letter request and certificate shall be in the form set forth in Annex II and shall be delivered to the FF8 not less than four business days before the Disbursement Date. The current DSAA procedures for obtai ni ng thi s certifi cate are, without be; ng incorporated herein, attached hereto as Exhibit B.
TABLE 9-111-1. DoD Guaranteed Loan Agreement Issued by the FFB.
9-18 Change No. 71 15 September 1986
DOD 5105.38-M
guaranties authorized to be issued under the Act, (iii) the Guaranty has been duly executed and del ivered by a duly authorized representative of 000, and (iv) the Guaranty constitutes the valid, legal and binding obligation of the United States, enforceable in accordance with the terms thereof and backed by the full faith and credit of the United States;
(c) Evi dence of the authori ty of each person who (i) signed th is Agreement on behalf of the Borrower, (ii) signed the Note, and (iii) will sign on behalf of the Borrower, any notices, requests for advances, or other documents contemplated by this Agreement; and
(d) The Note executed by the duly authorized representative of the Borrower.
4.2 The obligation of the FFB to make any advance hereunder is subject to the further conditions precedent that:
(a) No event of default within the meaning of Section 6 hereof shall have occurred.
(b) The FFB shall have received a letter request executed by the duly authorized representative of the Borrower and certified by the DSAA in the form specified in Annex II.
(c) All legal matters incident to the Guaranty, the Note, and this Agreement shall be satisfactory to the Counsel of the FFB.
SECTION 5 • COVENANTS.
The Borrower covenants and agrees that from the date of this Agreement and so long as any amounts remain unpaid on the note or otherwise under this Agreement:
(a) All payments of principal and interest on the Note and other fees and expenses shall be made free and clear of, and without deduction for, any taxes, levies, duties, fees, charges, deductions, withholdings, restrictions or conditions of any nature whatsoever now or hereafter imposed, levied, collected or assessed with respect thereto, by or with request to the Borrower or any authority thereof or therein;
(b) Any claim which it may not or hereafter have against any person, corporate or other entity (including without limitation, the United States, 000, the FFB, any assignee of the FFB, and any supplier of Defense Items in connection with any transaction, for any reason whatsoever, shall not affect the obligation of the Borrower to make the payments required to be made to the FFB under this Agreement or the Note, and shall not be asserted as a defense to the payment of such obligation or as a setoff, counterclaim, or deduction against such payments;
(c) It will pay all taxes, now or hereafter in effect, imposed with respect to this Agreement or the Note by any government other than the Government of the United States of America and will save and hold harmless any
TABLE 9-111-1. (continued)
9-21 Change No.7, 15 September 1986
DOD 5105.38-M
holder of· the Note from all losses or liabilities resulting from any delay or omission to pay such taxes; and
(d) Any legal action' or proceeding against it by the FFB with respect t~ this Agreement or the Note may be brought in the Superior Court of the District of Columbia or in the courts of the Borrower, as the FFB may elect, and by execution and delivery of this Agreement, the Borrower submits to each jurisdiction. In the case of the Superior Court of the District of Columbia or of the United States District Court for the District of Columbia, the Borrower consents to the service of process out of said courts by mailing copies of such process by registered United States mail, postage prepaid, to it at its address set forth in Section 8.3(a) hereof. *
SECTION 6. DEFAULTS.
6.1 A condition of default shall exist upon the occurrence of any of the following events of default:
(a) If the Borrower fails for a period of ten calendar days.to make any payment of principal or interest on the Note when due;
(b) If a default shall have occurred on any other loan to the Borrower by the DSAA, a holder of the Note, or the United States of America or any agency thereof;
(c) If any representation or warranty made by the Borrower herein or in any certification of the Borrower required herein proves to be at any time incorrect in any material respect; .
(d) If (i) the Borrower defaults in the performance of any of the provisions in Section 1, 2 or 7 hereof, and (ii) such default shall continue unremedied for thirty calendar days after written notice thereof shall have been given by the DSAA to the Borrower; or
(e) I f the Borrower defau lts in the performance of any other provisions in this Agreement and such default shall continue unremedied for thirty. calendar days after written notice thereof shall have been given to the Borrower.
6.2 Upon each and any such event, the holder of the Note may declare immediately due and payable the unpaid principal and accrued interest on the Note and any other note or other indebtedness of the Borrower held by the holder of the Note and thereupon such amount shall become immediately due and payable without protest, presentment, notice or other demand of any kind, all of which are hereby expressly waived by the Borrower, and if such event occurs before the full amount of the Loan Proceeds has been disbursed or before any other loan commi tment of the .ho 1 der of the Note to the Borrower ." has been fulfilled, the holder of the Note may terminate or suspend such commitments. The Borrower shall pay a 11 costs and expenses, i ncl udi ng attorney fees i ncurred in the collection. of amounts due hereunder after default.
TABLE 9-111-1. (Contlnued)
9-22 Change No.7, 15 September 1986
DOD 5105.38-M
authorized under, the laws of the Borrower, and all' actions necessary to authorize the borrowings hereunder and the execution, delivery and performance of this Agreement and the Note have been duly taken;"'and
(c) This Agreement has been, and the Note when issued will be, duly executed and delivered by persons duly authorized, and this Agreement constitutes, and the Note when issued will constitute, the valid, legal and binding obligation of the Borrower, enforceable in accordance with their respective terms.
SECTION 4. CONDITIONS OF LENDING.
4.1 The obligation of the Lender to make advances hereunder is subject to the conditions precedent that, prior to the first disbursement, it sha'll have received, satisfactory to it ;n form and substance:
(a) Evidence of the authority of each person who (i) signed this Agreement on behalf of the Borrower, (i i) signed or wi 11 sign the Note, and (iii) will sign on behalf of the Borrower, any notices, requests for advances, or other documents contemplated by this Agreement. Evidence of this authority shall be in the form of the letter at Annex IV; and
(b) The Note executed by the duly authorized representative of the Borrower.
4.2 The obligation of the Lender to make any advance hereunder is subject to the further conditions precedent that:
(a) No event of qefault within the meaning of Section 6 hereof shall have occurred;
(b) The DSAA shall have received a letter request executed by the duly authorized representative of the Borrower and prepared in accordance with the procedures for disbursement of Loan Proceeds; and
(c) All legal matters incident to the Note, and this. Agreement shall be satisfactory to the General Counsel of the DSAA.
SECTION 5. COVENANTS.
The Borrower covenants and agrees that from the date of this Agreement and so long as any amounts remain unpaid on the Note or otherwise under this Agreement:
(a) All payments of principal and interest on the Note and other fees and expenses shall be made free and clear of, and without deduction·for, any and all taxes, levies, duties, fees, charges, deductions, withho1dings, restrictions or conditions of any nature whatsoever now or hereafter imposed, levied, collected or assessed with respect thereto, by or with respect to the Borrower or any authority thereof or therein;
TABLE 9-111-3. (Continued)
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(b) Any claim which it may now or hereafter have against any person, corporation or other entity (including without limitation, the Government of the United States, DoD, DSAA and any supplier of Defense Items) in connection with any transaction, for any reason whatsoever, shall not affect the obligation of the Borrower to make the payments required to be made to the Lender under thi s Agreement or the Note, and shall not be asserted as a defense to the payment of such obligation or as a setoff, counterclaim, or deduction against such payments;
(c) It will pay all taxes, now or hereafter in effect, imposed with respect to this Agreement or the Note by any government other than the Government of the United States of America and will save and hold harmless any holder of the Note from all losses or liabilities resulting from any delay or omission to pay such taxes; and
(d) Any legal action or proceeding against it by the Lender with respect to thi s Agreement or the Note may be brought in the Courts of the District of Columbia or in the United States District Court for the District of Columbia or in the courts of the Borrower, as the Lender may elect, and by execution and delivery of this Agreement, the Borrower submits to each jurisdiction. In the case of the Courts of· the District of Columbia or of the United States District Court for the District of Columbia, the Borrower consents to the service of process out of said courts by mailing copies of such process by registered United States mail, postage prepaid, to it at its address set forth in Section 8.3(a) thereof. * SECTION 6. DEFAULTS.
6.1 A condition of default shall exist upon the occurrence of any of the following events of default:
(a) If the Borrower fails for a period of ten calendar days to make any payment of principal or interest on the Note when due;
(b) If a default shall have occurred on any other loan to the Borrower by the DSAA, a holder of the Note, or the Government of the Un ited States of America or any agency thereof;
(c) If any representation or warranty made by the Borrower herein or any certification of the Borrower required herein proves to be at any time incorrect in any material respect;
(d) If (i) the Borrower defaults in the performance of any of the provlslons in Sections 1, 2 or 7 hereof, and (ii) such default shall continue unremedied for thirty calendar days after written notice thereof shall have been given by the DSAA to the Borrower; or
(e) If the Borrower defaults in the performance of any other provision of this Agreement, and such default shall continue unremedied for thirty calendar days after written notice thereof shall have been given to the Borrower.
TABLE 9-111-3. (Continued)
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.Security Ass i stance Agency, Room 4E841, Department of Defense, Hash i ngton, * D. C. 20301.
f. Each application for a non-availability waiver should contain the following information:
(1) Identification and address of the applicant (2) Recipient country (3) Date and source of loan (FFB, etc.) (4) Manufacturer and/or exporter (5) List and description of commodities to be shipped (6) FAS value of commbdities (7) Shipping date (8) Loading port (9) Discharge port
(10) Estimated ocean freight cost (11) Proposed vessel(s) to be used (12) Weight of shipment (13) Cube measurement of shipment (14) Original point of production
3. Security Waivers.
a. Consideration will be given to waiver applications to authori~e vesse 1 s flyi ng the fl ag of the country to whom the agreement app 1 i es on the basis of reasonable security needs in regards to the cargo and the arrival of such cargo at its destination. A security waiver may be requested for a specific shipment or series of shipments under this agreement where sabotage may reasonably be expected or a state of emergency exists.
b. Appl ication for security waivers need not be submitted if a general waiver has been approved and the recipient nation will use U.S. FLag Vessels to carryover 50 percent of the carso under this agreement. Applications are required where a general waiver (1) has not been applied for, (2) has not been approved, or (3) has been apprbved but, on a shipment-byshipment basis, use of recipient country flag vessels will exceed 50 percent of the cargo under this agreement. If a general waiver has been approved, every effort should be made to ship those defense articles and equipment involving special security or safety requirements under the recipient country's portion of the cargo available under the general waiver. Therefore, waiver applications for security or safety reasons where a general waiver has been approv~d should be submitted only under unusual circumstances.
c. Applications on the basis of security must provide the specific security or safety requirements and information involved in the shipment(s) to be made at least 21 days in advance of the intended shipment(s) dates to enable verification of the security or safety requirements and to process the dpplication.
d. The application should be provided .to the Director, Defense Security As~i stance Agency , IRoom 4E841, Department of Defense, Washington, * D.C. 20301, with copy to the Director, Office of Market Development, Maritime IAdministration, U.S. Department of Transportation, Washington, D.C. 20590.
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C~REPORTS TO U.S. DEPARTMENT OF TRANSPORTATION. In order to monitor the use of marine transportation under this agreement, pertinent information should be forwarded as early as possible but not later than 90 days after ~hipment to the Director, Office of Market Development, Maritime Administrati.on, U.S. Department of Transportation, Washington, D.C. 20590, for all shipments of goods financed in whole or in part with credit and/or Guaranteed
. Loan fun9s. The following information must be reported:
1. Date and source of loan (FFB, etc.) 2. FAS value of Cargo 3. Manufacturer 4. Freight forwarder 5. Ocean freight cost 6. Name of vessel 7. Vessel flag of registry 8. Date of loading 9. Port of loading
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CHAPTER TEN TRAINING PROGRAM MANAGEMENT
SECTION I - INTERNATIONAL MILITARY EDUCATION AND TRAINING (IMET)
A. INTRODUCTION.
1. International Military Education and Training Program Guidance. This section provides gUldance and instructlons for providing mliltary training and training aids to foreign countries as grant aid in a manner that will ensure the greatest benefit to the program.
2. General Authorit~. The International Military Education and Training (IMET) Program is aut orized by Chapter 5, Part II of the Foreign Assistance Act of 1961, as amended, and provides for military education and training on a grant basis to military and related civilian personnel of friendly countries.
3. Scope of Program. Such training and education may be provided through attendance at military educational and training facil ities in the United States (other than service academies) and abroad; attendance in special courses of instruction at schools and institutions of learning or research in the United States and abroad; and observation and orientation visits to military facilities and related activities in the United States and abroad •. As used in this chapter, the term "Continental United States," (CONUS), excludes Hawaii; the term "United States," or "U.S.," includes both Alaska and Hawaii. For programming purposes, Hawaii is considered to be an overseas location. *
4. Purposes. Education and training activities conducted under this chapter shall be designed to encourage effective and mutually beneficial I\..~'::'"':~""'(" ::Inri increased understanding between the United States and foreign countries; to i!'!l::,"'ove Life UUllltV UI ..,ui"ticipating foreign countries to utilize their resources, including defense articles and defense services obtained by them from the U.S., with maximum effectiveness, thereby contributing to greater self-reliance by such countries; and to increase the awareness of nationals of foreign countries of basic issues involving internationally recognized human rights.
B. AREAS OF PRINCIPAL EMPHASIS. To the extent consistent with the purposes of IMET, prlnclpal emphasis will be placed as follows:
1. Individuals Likely to OccuPy Key Positions: Training of individuals who are likely in the future to occupy positions of influence or prominence within the foreign country's armed forces.
2. Encoura~ement of Professionalism: Training which encourages military professionallsm and the interchange of military doctrine, particularly by attendance at U.S. service schools at the advanced career, command and staff and war college levels.
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3. ManaTement of Resources: Training related to the management of resources at a I levels within the foreign defense establishment.
4. Ba1anced Program: Training that does not devote an inordinate or excessive portion of funds in anyone requirement at the expense of others and one in which host country needs are satisfied by an appropriate mix of IMET, MAP, and national resources subject to the availability of funds.
5. CONUS Training: All of the objectives in para'graph C (below) are best served in the long run by CONUS training and education which offers the best training environment and also exposes Foreign Military Trainees (FMTs) to U.S. society, institutions, and goals and the way in which ,these factors reflect the U.S. commitment to democracy and the basic principles of internationally recognized human rights.
C. OBJECTIVES OF IMET. Within the above purposes, the objectives of providing grant aid training to foreign countries are:
1. Operation and Maintenance Skills. To create skills needed for effective operation and maintenance of equipment acquired from the U.S.
2. Effective Management. To assist the foreign country in developing expertise and systems needed for effective management of its defense establishment.
3. Development of, Training Capabil ity. To foster development by the foreign country of its own indigenous training capability.
4. Provide an Alternative to Soviet Military Training. To reduce indigenous country tralning dependence on the USSR and its allies.
5. Ra~port and Understandin~. To promote better understanding of the U.S., includlng its people, polltlcal system~ and other institutions and how they reflect the U.S. commitment to the principles of internationally recognized human rights.
Initially, all of the objectives stated above should be pursued simultaneously, with emphasis shifting progressively from operations and maintenance to management of in-country ,capabilities, and finally to preserving military rapport and understanding of the U.S. The ultimate objective is to limit programs to the latter and should be pursued as rapidly as possible, consistent with the achievement of overall objectives.
D. CONSTRAINTS AND DSAA APPROVAL. FMTs are admitted to a wide range of the courses available through the MILDEPs, consistent with U.S. foreign policy, national security and broad considerations involving legislation, training policy, technology transfer, and national disclosure policy.
1. DSAA Approval. Consequently, requests for the following types of training must be approved by DSAA on a case-by-case basis and must include specific justification:
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on-going civilian law enforcement functions. See also Chapter 2, Section IV, "Special Provisions," para. A.8.
m. Intelligence and Other Sensitive Training. The scope of military intelligence training normally available to FMTs is limited to that which is directly related to combat or operational intelligence. Tactical intelligence training provided under security assistance programs will not be extended to include training in support of national intelligence programs of foreign countries. All requests for intelligence training provided by the MILDEPs will be reviewed carefully by the cognizant MILDEP to ensure compliance with this paragraph. Other potentially sensitive training requests should be addressed to DSAA for appropriate guidance, processing, or decision. Requests for the Combined Strategic Intelligence Training Program (CSITP) should be addressed to the Defense Intelligence Agency (ATTN: DIC). Requests which include IMETP funds to support attendance at CSITP must be justified with information copies to DSAA and HQ USAF. See also Chapter 2, Section IV, "Special Provisions," paragraph A.8.
n. Re etitive Trainin. Repeated participation by foreign individuals in orientatlons an or t e same training courses, to include formal classroom training following MTT instruction in the same subject material.
o. Training in suaPort of FMS Eauipment. Training in support of FMS equipment purchases shoul be programme and accomplished as a part of the overa 11 FMS agreement. IMET shoul d not be used to support major equi pment purchases unless specifically approved by DSAA and included as a part of the FMS agreement.
p. Minimum Duration of Student Trainin Prior DSAA approval is requlre to program stu ents or tralnlng ln t e U.S. for less than eight weeks total duration if all or part of the overseas travel is paid by IMET. If host country elects to fund round-trip transocean travel, no DSAA approval is required to program such training. Mandatory CONUS personnel processing or English language training will not be considered as part of the e; ght-week requi rement. Thi s 1 imitation does not apply to orientati on tours
* *
or general/flag rank related courses conducted by the Defense Resources * Management Education Center. *
q. Deployment of DoD Personnel or Teams. All training which requires U.S. personnel to travel to another country to conduct the training must be approved by DSAA prior to programming the training or making any offer or commitment to the foreign government(s) involved. See paragraph E.2. for specific criteria regarding MTTs. This includes U.S. Navy refresher training conducted outside the United States and its territorial waters.
r. DISAM Training. IMET funds will not be used to finance foreign * attendance at DISAM or DISAM MTTs.
s. Excessive High Cost Trainin~. In principle, IMET funds should not be used for excessive high cost trainlng. High cost training is defined as any education or any single course of training with a tuition cost of $25,000 or higher. However, selected high cost training will be considered on * a case-by-case basis by DSAA ~vhen justified, depending upon the training requested, the state of development of the host country, and within an overall
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balanced program. See also paragraph D.1.b. (above) concerning degree traini ng.
2. Requests for Waivers. Requests for waivers to the above constraints will be submitted to DSAA as soon as the requirement for such training is known. Requests \'olill include complete justification for the training and except for Ambassadorial certification for OTs (see paragraph D.l.i. above) will include a statement of SAO chief concurrence. Such requests will be addressed by the sAo to DSAA and the unified command as .joint action addressees. DSAA wi 11 respond fo 11 owi ng recei pt of unified command recommendation(s).
3. Programming. Training program lines requiring approval by DSAA will be programmed by the MILDEPs with the appropriate waiver code in the DSAA waiver (card column 58) column of the 4/Q cards. SAOs will be required to submit written justifications at the Unified Command Workshops. Waiver requests not submitted at the workshops wi 11 be submitted no 1 ater than 90 days prior to student report date. If approved, DSAA will authorize the MILDEP to program requested training and include an nAil in Card Column 57 to signify approval. The waiver code in Card Column 58 will be a permanent entry and maintained for historical purposes. Training waivers approved by DSAA at the Unified Command Workshop may be coded "A" in card column 57 by the * MILDEPs.
E. TRAINING GUIDANCE.
1. Training Plannins. Particular emphasis should be placed on out-year planning of training requlrements by SAOs and Unified Commands. SAOs should maintain an active dialogue with host country counterparts to develop a two-year training plan which consolidates host country training needs from a joint perspective taking into consideration all sources of funding (i.e., FMS, MAP, IMET) and all potential sources of training (i.e., indigenous, third country, commercial, and U.S.). SAOs should use the two-year training plan as the vehicle to encourage host country training counterparts to plan beyond a single year program. SAOs should also use the two-year training plan as part of the SAO input to the training AIASA in view of the overlapping reporting periods and similar statistical summary requirements by training analysis code categories. Specific guidance on preparation and presentation of the two-year training plan is contained in paragraph E.2.d. below.
2. Joint Service Training Planning Worksho~s. During each fiscal year ** Unified Commands will host Jo;nt Servicelra;ninglanning Workshops on behalf of the training community. The workshop cycle present"ly commences during the last week of January with the EUCOM workshop, followed in sequence by the PACOM, CENTCOM, SOUTHCOM and Caribbean workshops. There will be a one-week gap between each workshop with the exception of the Caribbean workshop which will be scheduled to commence on the next Monday after the SOUTHCOM workshop.
a. Workshop Objectives. ** (1) Review and coordinate the two-year training plans **
developed by the SAOs and approved by the Unified Commands for the budget year and planning year.
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(2) Finalize the budget year training program for each ** country.
(3) Reconcile training policy, program, and planning issues. **
b. Workshop Format. Each workshop, consolidated on a joint ** service basis, will consist of two phases conducted in not more than five duty days. Phase I (Planning and Policy) will consist of a plenary session with presentations by the Unified Command, SAOs, and CONUS attendees as appropriate. Phase I will focus primarily on training planning and policy issues and the review of SAO requests for exceptions to policy. Phase II (Programs) ·will consist principally of MILDEP panels devoted to a detailed review of country training program data.
c. Workshop Attendance. **
(1) SAO attendance wi 11 be 1 imited to one representative per ** country; this should normally be a U.S. training officer.
(2) Foreign national attendance is not authorized except in ** those cases where the Unified Command determines that foreign national attendance is critical to the presentation and review of the program.
(3) Total number of representatives from each MILDEP will be ** limited to four personnel.
d. SAO Two-Year Training Plans. SAOs will submit written two-year ** training plans covenng the budget year and the planning year prior to the Joint Service Training Planning Workshop in accordance with guidance from the Unified Command. Two-year training plans will consist of the following topics:
country.
(1) Overall host country training capabilities. **
(2) Primary suppliers of equipment and training to the host **
(3) Overall training program objectives. **
(4) Significant accomplishments toward meeting the objectives. **.
(5) Future objectives and program requirements. **
(6) Program development, to include a brief description of the ** training planning process, highlighting host country and SAO roles, problems if any, and plans for improvement.
(7) Brief summary of current year, budget year, and planning ** year IMET training programs broken out by the nine primary training analysis code categories: PME, MGT, PGS, UPT/FLT, TECH, OT, OCONUS, TEAMS, and SUPPORT. Each category should reflect students, dollars, and dollar percentage of the program. FMS training progrc:ms should be broken out by total cases, students, and dollars.
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(8) Cost sharing, current status, and budget year forecast, noting service variations, if any.
(9) Host country English language training (ELT), to include ** status of language labs, plans to enhance or develop ELT, in-country problems, etc.
e. SAO Training Plan Presentations. SAOs will provide an oral ** presentation within a time limit and format prescribed by Unified Commands. At a minimum the SAO oral presentation will cover highlights of the two-year summary (current year/budget year/first plan year) by training analysis code
.categories broken out by students, dollars, and percentage of dollars for each category. The overall objective of the SAO oral presentation is to highlight and clarify the vital aspects of each plan for Unified Command and CONUS workshop attendees to enable them to better respond to the unique requirements of each country. .
f. SAO;Requests.·\,for Exception to Policy. SAOs will submit written ** policy waiver requests to the Unified Command that include full justification for the training, and exc~pt for Ambassadorial certification for OTs, include a statement of the SAO Chief's concurrence. Unified Commands and MILDEPs will recommend waiver approval/disapproval by the end of the first day of the workshop. The justifications and recommendations will be provided to the DSAA representative on the second day of the workshop for final approval/disapprov-al. Unified Commands will coordinate this effort.
g. ~lILDEP Presentations. Each MILDEP will make one consol idated presentation during Phase I representing all MILDEP agencies that includes appropriate policy and programming issues. Each MILDEP will provide information copies of MILDEP presentation to the other MILDEPs and the Unified Commands prior to the workshop cycle. DSAA will review MILDEP presentations prior to the workshop cycle.
3. Student Training.
a. Trainin at U.S.
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:; r '0"
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are formal courses of instruction, observer training (OBT), on-the-job training (OJT), and orientation training tours (OT). For accounting purposes, costs related to the Informational Program are also charged to this account. For programming instructions, see paragraph K of this chapter.
. (1) U~S. Military Service Schools. Foreign military trainees (FMTs) desiring to attend U.s. military service schools must meet the same qualifications as U.S. personnel. These requirements are set forth in applicable school catalogs, DoD Instruction 5010.16-C, "Defense Management Education and Training," and other media. Questions concerning specific entrance requirements shoul d be addressed. to the mi 1 itary department having cogn; zance over the particular training facility.
(2) U.S. Civilian Schools. Training at non-military institutions is authorized only if equivalent training is not. available at U.S. military facilities. DSAA approval is required prior to programming. (Resulting approval will be indicated by placement of an II A" in column 58 of "4" and "Q" cards.)
(3) U.S. Service Academies. IMETP funds cannot be used to fund attendance at the service academies.
b •. Engl ish langua~e Training. Technical control of all Engl ish language training programs 1S the responsibility of the Defense language Institute English language Center (DlIElC). All English language training -basic, intermediate and advanced, provided to achieve the English comprehension level required for entry into training, and provided under the provisions of International ~1ilitary Education and Training or Foreign ~lilitary Sales, will be conducted by DlIElC. Exceptions to this may be approved on a case-bycase basis by the Director, DSAA.
, (1) Minimum English Comprehension level (ECl). It is the responsibil ity of the foreign country to ensure that trainees meet the ECl required for attendance at the particular course of instruction, regardless of how or where the language training is conducted. Except as may be specifically authorized elsewhere in this manual, 55 is the minimum ECl cut-off score for entry into English language courses, other than language instructor or refresher training at .the Defense language Institute English language Center (DlIElC). Exceptions to this requirement require prior DSAA approval and will be granted only where cl early justified by unusual ci rcumstances. Countri es permitted to attend DLIElC under the minimulI) ECl cut-off sco,re of 55 will be notified at the beginning of each fiscal year (IMET only). '.
(2) Foreign Countries' Responsibility. ~JHh few exceptions, all foreign countries are considered to possess the resources (e.g., public and private schools, commercial institutions) needed to provide the necessary English language trai'ning to meet the ECl level set forth immediately above. Countries will be expected to increase their English language training capability above the minimum 55 ECl requirement. Assistance may be provided under the IMET program by training of instructors at DLIElC, by providing English language mobile training teams (MTTs) or field trainin~ services (FTS), and by providing appropriate English language training aids and equipment. Information on these MTTs and FTS is contained in DlIElC 1025.1-M.
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following listing, therefore, is intended as a guide to subjects generally considered to pertain to this field of activity.
(2) Planning. Defining defense objectives and making decisions among alternative courses of action to achieve these objectives.
(3) Programming. Establishing schedules for achieving objectives, collecting functions and activities sharing the same objective into families (programs), and estimating resource requirements for each.
(4) BUdretin~. Formulating detailed yearly projections of resource requirements or t e programs, obtaining and allocating associated funds, and balancing priorities in the competition for limited resources.
(5) Management of Capital Assets. Acquisition and disposition of goods and services. ~anagement systems relating directly to tactical use of weapons and support systems are normally excluded.
(6) Management of Resources of Operating Activities, Including Employment of Maneower Resources. Adminlstering the acquisition of consumable resources and thelr consumption in the execution of assigned missions.
(7) Accounting. Measuring results and status, usually in financial terms, for both organizational units and functional areas.
(8) Reporting. Transmitting financial and non-financial information on status and results of operations and investment to the appropriate levels of management.
(9) Evaluating. Analyzing defense activity performance and test results to determine the merit or degree of effectiveness of the activity or resources concerned.
(10) AUd;tin~. Reviewing the accuracy of reported results and judging the adequacy of an compl iance with establ ished pol icies and procedures.
(11) Financial. Budget submissions, status reports on obligations and allotments, general ledger accounting,· working capital fund reports.
(12) Manpower. Military and civilian authorization procedures, manpower status reports, management engineering methods.
(13) Supply. Item and weapon system supply management, inventory accounting, property disposal.
(14) Maintenance. Field maintenance management procedures, depot maintenance industrial fund, standard cost accounting and workloading.
(15) Facilities. Management reports, contract construction procedures.
(16) Acquisition. Contractual procedures, cost information reports.
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(17) Research and Development Test and Evaluation. R&D concept papers, project control documents, test design, analysis, reliability.
f. On-the-Job Training. On-the-Job Training (OJT), or qualification training for CONUS Air Force courses, is training conducted on a planned program of supervised instruction devoted to practical application of a previously achieved skill usually related to a formal course of instruction. Programmed OJT will normally supplement formal technical training received at a school. This training will be planned in advance in the country's training program and will include detailed requirements for training in specific areas of interest and on types of materi a 1 used by the country concerned. OJT conducted independently and not in conjunction with formal courses of instruction will be authorized in the U.S. only when no course covering the desired training is available. OJT in overseas schools and installations will be provided in accordance with the policies established by the Commander of the Unified Command concerned.
4. Mobile Training Teams (MTTs). MTTs are provided under budget * project/ generi c code N20, and are composed of t'lILDEP personnel on tempora ry duty for the purpose of training foreign personnel.
a. Approval Criteria. As with any other aspect of a particular IMET country program, the decision to use MTTs should be based on consideration of all of the advantages and disadvantages inherent in the use of the particular MTT at a particular time, and in a particular country. A fundamental objective of IMET is to reach foreign military personnel who are, or are 1 ikely to be, influential in -their services/countries by having them attend professional level CONUS training. The intent is to expose the foreign trainee to the American people, their way of life, institutions, beliefs, and -aspirations. While this objective is not exclusive or overriding with respect to other considerations, it must be considered when selecting MTTs versus CONUS training. Moreover, any decision to use MTTs solely for their apparent cost benefits runs the risk of detracting from accomplishment of overall IMET objectives. Finally, MTT requests under IMET should clearly demonstrate that MTTs are the best training option and mET is the only funding option. Every attempt should be made to provide MTTs through FMS rather than IMET.
b. Other Criteria Bearing on MTTs. Within the guideline established above, MTTs should be considered when one or more of the following factors are clearly present:
(1) The training must be accomplished in the most rapid manner possible or in response to a particular threat or adverse condition affecting the security of the country concerned.
(2) The training is of relatively short duration and must reach a large number of trainees and entails extensive use of interpreters or language-qualified team members.
(3) The training can only be conducted on equipment or in facilities located in the foreign country.
c. Authorization Criteria. MTTs may be authorized for deployment to foreign countries and also to U.s. installations and facilities as follows:
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(b) Training Aids. Training aids (inclUding PC~~T) will be programmed separately in the country program under generi c code N2, description: MTT-TRNG AIDS (MASL Item-ID 309000-CONUS, 319000-0/S). This program line will show the next appropriate sequential "alpha" in column 65 of the worksheet control number. Only those training aid requirements for use by the MTT which cannot be predetermined and requisitioned under FMS will be included under this procedure, subject to approval by DSAA.
j. Not Authorized for Technical Assistance. MTTs are not authorized for the purpose of providing "technical assistance."
5. Technical Assistance. Technical Assistance Teams (TATs) and Techni- * cal Assistance Field Teams (TAFTs) are provided under generic code M, and are normally requested at the time major equipment is ordered.
a. TATs are composed of U.S. 000 personnel deployed to a foreign country in a TOY status to place into operation, maintain and repair equipment provided under foreign military sales (FMS) or grant aid programs. TATs are not considered to be security assistance training and are not provided under IMET, except in the case of the installation of English language laboratories. *
b. TAFTs are composed of U.S. 000 personnel deployed in a PCS status for the purpose of providing in-country technical support to foreign personnel on specific equipment, technology, weapons, and supporting systems, when MTTs and ETSSs are not appropriate for the purpose requested. TAFTs are not considered to be security assistance training and, therefore, are not provided under IMET.
6. Field Trainina Services (FTS). Budget project N30 provides funds for 000 Eng;neerin~ an Technical Services Specialists (ETSS) and Contract Field Services (CFS) personnel, as specified below: .
a. Approval Criteria. See paragraph 2.a. above.
b. 000 Engineerin~ and Technical Services Specialists (ETSS). ETSS are 000 miTitary and civllian personnel technically qualified to provide advice, instruction, and training in the installation, operation, and maintenance of weapons, equipment, and systems.
(1) Administration. ETSS will be attached to the SAO rather than assigned and carried on the Joint Table of Distribution (JTD). They will not be provided as an augmentation to the SAO staff to perform duties which are normally the responsibility of that staff. They will not be used for follow-on retraining or in advisory roles, except in rare instances when the recipient country is not capable of providing qualified personnel from its own resources or of hiring qualified personnel from non-indigenous sources and the SAO recommends it in the interest of the U.S. ETSS provided as English 1 anguage instructors, supervi sors, or advi sors on detached duty status from DLIELC will be attached to the SAD, as specified above.
(2) Duration. ETSS may be provided for periods up to but not exceeding one year, unless specifically approved by DSAA. In those rare cases
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where the technical services are required for periods in excess of one year, ETSS personnel will be attached to the SAO for operational control and administrative and logistical support.
(3) Programming Instructions. ETSS will be programmed under generic code N30.
(a) Re~uirements. ETSS personnel will be programmed on the basis of man-month requlrements. The program cost will include:
CONUS Travel, Transoceanic Travel (round trip), In-Country Travel, Station Allowance (military or civilian), Overseas Allowance (military or civilian), Official Baggage, including excess, if justified, Salaries of 000 Civilians.
(b) In-Country Travel. ,For programming purposes, a factor of $40.00 per man per month is authori zed to cover the cost of i ncountry travel, if the actual cost is unknown.
(c) CONUS Travel. For programming purposes, a factor of $320.00 is authorized to cover the cost of CONUS travel.
(d) Overseas Living Allowance. For programming purposes, a factor of $210.00 perman per month is authorized as a living allowance.
(e) Official Baggage. For programming purposes, $150.00 round trip per man is authorized for official baggage (five pieces of checked luggage, not to exceed 150 pounds total; 84 pounds excess).
b. (CFS Personnel. CFS are furnished under contract Wlt prlvate ln ustry. ey provl e a vice, instruction, and training in the installation, operation, and maintenance of weapons, equipment, and systems. CFS will be utilized only when necessary for accomplishment of a military mission, provided that it can be clearly shown that personnel of the required ski1i are not available from DoD resources and the MILDEP involved determines that satisfactory provision of services by 000 personnel is not practicable. Conditions of CFS must be approved by DSAA.
(1) Programming Instructions ~ CFS programmed on the oasis of man month· requirements. include:
Transoceanic Travel (round trip), Contract Cost (per month), Living Allowance, Official Baggage, ,including excess,
requi rements wi 11 be The program cost wi 11
if justified.
(a) Contract Cost. Contract cost will be based on a per month rate and will include cost of transportation from home office to the U.S. port of embarkation, less the living allowance payment (in local currency) described below.
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(b) Local Currency Living Allowance. A daily living a 11 owance (payable in 1 oca' currency) ; s author; zed for CFS Personnel. For programming purposes, a factor of $210.00 per man per month is authorized (payable in local currency) as a living allowance. The $210.00 factor will be programmed as a dollar requirement.
(c) Official Bagla~e. Unless other and more accurate cost requirements are known, program} 0.00 round trip per man for official baggage (150 pounds total, 84 pounds excess). CFS may be programmed on a one-year basis in a fiscal year program for total man-month cost regardless of whether the durati on (man-month servi ce) extends into the subsequent fi sea 1 year.
7. Orientation Tours (OT). This category includes orientation tours * and, for programming and accounting purposes, related Informational Program requirements.
a. Orientation Tours and Policy Guidance.
(1) Objective. The objective of orientation tours is to provide selected students an opportunity to become acquainted with U.S. mil itary doctrine, techniques, procedures, facilities, equipment, organization, management practices, and operations through short term orientation as opposed to attending longer term formal courses. In addition to the purely military objectives to be achieved through orientation training, it is intended that orientation tours serve to enhance mutual understanding, cooperation, and friendship between U.S. forces and those of participating nations.
(2) Country Team Evaluation. OTs for IMET funding should be programmed only after the u.s. ambassador attests to their importance to the country's efforts with adequate supporting rationale provided' by the SAO to DSAA for approval. OTs should not comprise a major portion of an established program nor be a routine use of country program funds.
(3) Foreign Participants. OTs are generally intended for key personnel. The basic premise under which OTs are offered is that only officers holding important positions, or those with the possibility of holding such positions, shall be selected. Visits by foreign military cadets to U.S. service academies are not authorized under IMET. Participation in orientation tours should be limited to officers occupying important positions but below the U.S. equivalent of'Chief of Staff or Chief of Naval Operations. Visits of foreign officers equival~nt to a Chief of Staff or Chief of Naval Operations are conducted at the invitation and expense of the U.S. MILDEP concerned. Based on DSAA approval, IMET funds may be considered on a case-by-case basis to finance portions of such visits, after they have been approved by th,e appro~riate service chief.
(4) Student Selection. Selection of students for orientation tours and the design of itineraries should be made on the basis of maximum accompl ishment of orientation tour objectives as outlined in paragraph C. Where tour objectives are specific in terms of exposure to specialized techniques, procedures, and facility operation, the schedule should be designed accordingly, as opposed to tours in which the objective is intended, to be broad exposure to concepts, higher level decision making, management, and
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staff operation. In no instance should tour itineraries reflect a tourist orientation schedule in which the tour objectives are obscure. Visits to large metropolitan centers which do not directly relate to orientation tour objectives should be avoided. DSAA approval of the orientation tour itinerary and areas of interest is required prior to commitment to the host country.
(5) Approval of Exceptions. Requests for OTs which fall short of the objectives as stated herein will be forwarded to DSAA with supporting rationale and justification for approval prior to any proposal to country officials which could be construed as an agreement to provide a tour.
(6) Official Entertainment. Official entertainment in connection with OTs (luncheons, dinners, receptions) should be in keeping with the grade and position of the tour participants. Protocol activities of this nature should be arranged on an austere basis. Activities which could be interpreted as being lavish should be avoided.
(7) Size of Tour Groups. Large group OTs are discouraged. Experience indicates that orientation tours for large groups are difficult to
.manage and usually result in a bland experience for the majority of participants, a.t a disproportionate cost. In addition, since OTs are expensive in terms of both service support resources and IMET funds, the number of personnel comprising OTs should be kept to a minimum.
(8) Assignment of Executive Agency and Escort Officers. An executive agency is assigned to conduct and provide escort officers for OTs in the CONUS. The executive agency is the MILDEP having primary interest in the tour, or the MILDEP selected by DSAA as executive agency to implement a specific tour. Every effort will be made to provide escort officers fluent in the language of the tour participants when lack of English fluency of the participants makes a language qualified escort essential to tour objectives. Normally, an SAO representative should not be used as escort officer. However, in exceptional cases and with prior approval of DSAA, the executive agency may consider an SAO representative to serve as an escort officer when justified, e.g., because of special qualifications, workload, unusual rapport with key host country personnel, and associated projects/contacts which might be beneficially exploited to the U.S. advantage. The SAO representative selected as an escort officer will be under the complete jurisdiction of the executive agency and will remain with the tour at all times until the tour participants return to host country. TOY travel and per diem costs for the escort officer for the duration of the tour are chargeable to IMET funds, and will be programmed as a separate program 1 ine in the country program under budget project N70. U.S. personnel other than bona fide escort officers designated or agreed to by the executive agency for tourimplernentation are not authorized to accompany tour groups. A factor of $600.00 per man week is authorized for programming (N7B) when escort officer services are required in connection with orientation tours. The dollar value of escort officers is programmed in columns 51-56 of cards 4 or Q, as applicable.
(9) Leave for Participants. When authorized in student Invitational Travel Orders (ITO), leave may be taken by tour participants at the conclusion of an OT at no additional expense to IMET.
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b. Types of Tours. OTs for Distinguished Visitors (DV) and orientation tours are authorized for IMET programming. v!hen submitting * orientation tour requirements, the positions held by the visiting officers will be indicated for the type of tour selected.
(1) Orientation Tours for DistinTuished Visitors. OTs for DVs are authorized for the purpose of providing an 0 for senior countr'y officials holding positions of major importance and higher authority below the equivalent U.S. position of Chief of Staff or Chief of Naval Operations. Requests for OTs at the Chief of Staff and higher levels will not be funded under IMET and should be referred to the corresponding U.S. element for action. DV tours are restricted to not more than one per service per year, subject to MILDEP capability to implement the tour. DV tours are normally for a period not to exceed 14 calendar days plus overseas travel time and to not more than five visitors per tour.· Travel arrangements (mode of transportation for transoceanic and domestic travel) and accommodations should be comparable to those provided U.S. personnel under similar circumstances. Instructions contained in paragraphs 5.a.(1), (2), and (3) above apply.·
(2) Orientation Tours (OTs). OTs are authorized for the * purpose of providing an orientation tour for selected officers who may become future leaders and policy makers, but do not presently qualify as a DV. Tours should be restricted in number to the extent possible and limited primarily to foreign military participants. The overall target should be to reduce the cost of the tour by restricting the number of participants involved. Instructions contained in paragraphs 5.a.(1), (2), and (3) above apply.
8. Observer Trainint. Observer training is training during which the * student observes methods 0 operation, techniques, and procedures as a medium of instruction. Observer training is not related to a formal course of instruction although it sometimes supplements or follows a student's formal training.
a. Conditions for Authorization. Observer training will be authorized only when no course covering the desired training is available. This includes specialist-type training.
b. Exclusions. In addition, certain observer training explicitly excl udes "hands on" training. For example, foreign personnel enrolled under medical observer training will be prohibited from actual hands-on patient care.
9. DoD. Informational Program (IP). In accordance with DoD Directive * 5410.17, each tralnee attending a formal course in the U.S. is given the opportunity to participate in the IP. The objective of the program is to assist trainees in acquiring a balanced understanding of U.S. society, institutions, and goals, in addition to their military experience while in the U.S. In addition, the program gives foreign personnel the opportunity to gain maximum benefits from their learning experience by participation in extracurricular activities arranged by the MILDEP in order to facilitate their adjustment to their new surroundings. Activities such as visits to private homes, local industries, industrial and cultural exhibits, farms, schools, historical points of interest, sports events, and civic activities are to be encouraged.
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In the interest of fostering understanding and goodwill, the program should include frank explanation and free discussion with the trainees of our governmental structu're, our judicial system, the two-party system, the role of our free press and other communications media, minority problems, the purpose and scope of labor unions, our economic system, our educational institutions, and the way in wh i ch a 11 of these elements refl ect the U. S. commi tment to the basic principles of internationally recognized human rights. Consistent with the~esponsibilities and duties of trainees, the Geneva Convention (concerning the principles and rules of the laws of armed conflict) should be included.
a. Applicability. The program applies to foreign military trainees and military-sponsored visitors in the U.S. under the security assistance program. As appropriate to the surrounding environment, the IP also applies to DOD training installations overseas performing security assistance military training functions.
b. ResponSibilit~ for Implementation. MILDEPs are responsible for implementation of the IP.ost factors for implementing the program will be included in and derived from the course tuition costs. Commanders of U.S. training installations will designate a foreign training officer (FTO) for consolidated administration of FMTs and to conduct the IP.
. c. Funding. Extraordinary expense funds (N60), as limited by foreign assistance appropriations and foreign assistance acts, are also authorized for use in conducting certain IP activities for IMET FMTs.
d. Scope of Funded Activities. IP activities include transportation, meals, lodging, admissions, programs, and related incidental expenses. The student will be required to assume personal costs for laundry, cleaning, telephone services, and all other costs not directly associated with the programmed tour. IP funds may be used to finance the cost of distinctive medallions, plaques, ornaments, or mementos which serve to commemorate the student's experience in participating in a particular IP activity. They should be distinctive in design and nominal in cost so as to eliminate the feeling on ~he part of FMTs that reciprocation is required.
(1) Use of Local Civic Groups. IP activities should make maximum use of local civic groups, organizations, agencies, facilities, and historical attractions. Of particular interest is the development of a student sponsorship program to include both U.S. military and civilian participants. Emphasis should be placed on activities in the civilian sector of the community in which the trainee is training as a means of providing the best possible exposure to the civilian aspects of the program. When program objectives cannot be fully satisfied in the local area, visits to other communities are authorized.
e. Visits to Washington, DC. A major goal of the IP is to enable officer students and, when justlf1ed and approved by DSAA, selected senior enlisted students to visit Washington, DC, A maximum of four days for this aspect of the tour is authorized, not to include travel time. Training schedules, weather, and other variables may preclude achievement of this goal. In this regard, priority attention is to be given to fulfillment of the primary training objective for which the student was sent to the CONUS, with the IP assuming a subordinate role.
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f. Entertainment and Social Activities. Entertainment and social events should not be a predominant element of the program. Social activities arranged for foreign trainees should include a proportional number of U.S. military, civilian guests, and trainees whenever possible.
g. Duty Status of Trainees. Trainees participating in IP tours are considered to ie ln a duty status. The living allowances authorized for IMET trainees at their training centers (see Table 10-II-2 of this chapter) will be continued throughout the duration of the tour.
h. Partici~ation of Degendents. Dependents who accompany or join FMTs in the U.S. wille encourage to participate in IP activities, but at no additional cost to the program.
10. Country Liaison Personnel. Use of foreign personnel as liaison * officers to assist U.s. training activities with FMT administration is authorized only after the MILDEP concerned has acknowledged the need for assistance and has the capability to provide logistic support. Liaison personnel will normally be authorized only in those instances in which a country is schedu 1 ed to tra ina 1 a rge number of students or where student background warrants liaison personnel assistance. Programming procedures for travel and living allowance are the same as for FMTs, if funded under IMET. Liaison personnel will be programmed under generic code N10. Liaison officers will not be authorized to pursue a course of instruction concurrently with liaison duties.
11. Correspondence Courses. Correspondence courses are not eligible for * IMET funding.
12. Self-Invited Visits. Self-invited visits are outside the purview of * security assistance. Requests should be submitted outside of security assistance channels, from the host country Washi ngton Attache to the cogni zant MILDEP in accordance with applicable MILDEP regulations.
13. Contractor Training. Contractor furnished training is normally not * eligible for IMEl funding and should be obtained through FMS. Requests for except ions wi 11 be cons i dered on a case-by-case bas i s and only when the specific training is not available from the MILDEPs.
14. Civilian FMT Privileqes. Civilian FMTs under ITOs are authorized * commissary and exchange privneges subject to MILDEP and unified command regulations.
15. Foreign Military Trainee Positions of Prominence and Influence ** Reporting. Per OSD message 232357Z May 86, each Unified command wlll submit data by mail to DSAA (ATTN: CO~lPT-TMD) annually regarding positions of prominence achieved by former FMTs trained under the U.S. Military Security Assistance Training Programs. The data will be used to assess the effectiveness of the programs in reaching trainees who subsequently achieve positions of prominence and for justification to the Congress of the annual security assistance budget submissions.
a. Description of Mil itar~ Ranks for Re~orting Purposes. For ** purposes of this report, prominent milltary positions lnclude all general and
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000 5105.38-M
flag rank officers and lesser ranks such as military attaches to major world capitals, commanders of elite or singular units with a special task such as guarding the nation's capital, or colonels or navy captain equivalents serving as a chief of a service, senior cabinet aides, senior positions on the joint or general staff, or commanders of training installations which would be held by general or flag officers in the U.S.
b. Description of Civilian Ranks for Reporting Purposes. Civilian ** graduates under m,1,tary security assistance training programs achieving positions of prominence and influence include heads of state (includes royalty), government cabinet and deputy cabinet ministers, ambassadors, members of parliament and, where known, chiefs of leading business enterprises and other leaders of the civilian community.
c. Data Collection Responsibility. Data should be collected from ** the SAOs by the Unifi ed Commands. and submitted to DSAA/TMD, along with any supplemental information deemed appropriate.
d. Data Format. The data wi 11 be composed of both an update on individuals previously reported if his position or status has changed and the inclusion of any additional former FMTs who have achieved positions of prominence or influence since the last report. The data should be formatted in the following order: (1) country; (2) source of funding (i.e., FMS, IMET, MAP funded); (3) name (last, first, MI); (4) current rank (foreign and U.S. equivalent); (5) prominent positions held (to include all previous positions of prominence); (6) current position; (7) specific training completed (course name or subject); (8) place of training (name of installation); (9) adademic degree (if appropriate); (10) year(s) attended.
e. Reporting Period and Timing. Information should be submitted annually, by 1 Jan for the preceeding fiscal year.
f. Reports Control S~mbol. This requirement is established as a standardized DSAA report under D AA reports control symbol assigned DSAA (A) 1230.
F. GENERAL GUIDANCE CONCERNING STUDENTS.
1. Selection and Utilization of Trainees.
a. Selection of Trainees. To the extent practicable, personnel trained under the auspices of the IMrT program, and particularly those attending CONUS schools, will be selected from career personnel likely in the future to occupy key positions in the foreign country's defense establishment. Except as may be authorized specifically by DSAA, the requirement for selection of career personnel is mandatory for attendance at professional level schools (e.g., command and staff or equivalent and higher, and college level).
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b. Utilization of Trainees. Under the direction and supervision of Commanders of Unified Commands, sAOs are responsible for obtaining appropriate assurances that personnel trained under the auspices of this program are properly and effectively utilized. Such utilization is defined as prompt employment of the individual in the skill for which trained for a period of time sufficient to warrant the expense to the U.S.
(1) A system of periodic review of trainee assignments should be incorporated into SAO operating procedures. As a guide, optimum assignment periods are considered to be three years for flight instruction and highly technical training such as missile training, and not less than two years for other training, particularly instructor training.
(2) To the extent consistent with available resources, SAOs are expected to maintain surveillance over utilization of U.S. trained personnel, with emphasis on the more critical and higher level skills and personnel attending CONUS schools. Periodic reports rendered by appropriate foreign authorities normally will satisfy this requirement.
2. Student securit~ Screening. A security screening of trainees will be accomplished by U.s. 0 flcials in country prior to issuance of the ITO for all scheduled training, regardless of level of classification. Additional information is required for trainees attending classified courses.
a. Attendance in Classified Courses. The SAO must receive a statement in writing from the foreign government that the government concerned sponsors the trainee, that the trainee has been subjected to a security screening and that the level of security clearance granted by his government does not constitute a security risk to the United States, that the information to be obtained during the training will not be released to another nation without the specific authority of the U.S. Government, that classified information will be provided the same degree of security afforded it by the U.S. Government, and that any proprietary rights involved (patented/copyrighted or not) will be respected and protected. ~!hen this certification is obtained, the applicable statement will be checked in Block 8 of the ITO, DD Form 2285 (Figure 10-11-1, this chapter).
b. Access to Classified Material. The security certification described above does not constitute a U.s. clearance as the basis upon which to release classified material to the trainee. When classified instruction is requested, acti on wi 11 be taken wi th the MILDEP concerned to estab 1 ish the authority and determine the classification of material to be released during training, based on a need to know and disclosure agreements with the country making the request.
3. Transportation and Accommodations for FMTs. It is DoD policy to encourage foreign countries to assume the cost of transportation for their students so that IMET funds are utilized to permit higher numbers of students to be enrolled in training.
a. Travel within Student's Country. The program will not pay travel costs of trainees traveling within their own country.
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000 5105. 38-~1
b. Use of Foreign Flag Carriers. Whenever possible, SAOs assigned to countries which have national flag carriers with routes to or part way to the U.S. will obtain agreement from the host countries to transport their respective trainees on such carriers at no cost to the U.S.
c. Modes of Transportation when Furnished by the U.S. Travel between home country and the training center for those FMTs provided transportation by the U.~ •. Government will be the most direct route, except as specified below.
(1) Travel to/from CONUS by Military Airlift Command (MAC) Aircraft. FMTs are authorized to travel by MAc aircraft. Transportation of FMTs including those whose country elects to pay the cost of the transpor,.. tation will be at common user rates.
(2) Travel to/from CONUS b U.S. Commercial Air or Surface. Travel to and from t e •• Wl •• overnment transportatlon ) to the fullest extent feasible. When the use of U.S. Government transportation for the entire trip does not permit the trainee to meet course or class convening dates, combinations of U.S. commercial air or surface common carrier (tourist class) and government transport will be used. Where this combination has been used, U.S. Government transportation for the return travel· to the home country will be utilized to the fullest extent possible.
(3) Travel within CONUS. Transportation to and from training installations within the U.S. generally will be by surface common carrier or commercial aircraft. Travel by privately owned vehicle (POV) may be author"" ized except in those instances in which it would be prejudicial to the best interests of the U.S. Government.
d. Funded Travel. Transportation may be funded except for those students from countries with which the U.S. has reached agreement for such countries to pay transportation expenses.
e. Trans ortation for De endents of Trainees. Transportation for dependents of tralnees Wl not e provl e at overnment expense. If the trainee elects to bring his dependents to the U.S. (or to an overseas training installation) for those courses identified in Table 10-11-2, Note 4, he may be allowed the cost of his transportation as prescribed in his ITO so that he may travel with his dependents. When this option is selected, the student is required to utilize U.S. flag carriers if available. In these instances, the trainee will be reimbursed for travel costs as follows:
(1) The MAC tariff rate if MAC transportation would have been the mode utilized through U.S. Government arrangements, or the actual cost of
. travel, whichever is lower.
(2) Category Z rate or the actual cost of travel, whichever ;s lower.
f. Transportation for Emergency Leave. Round trip transportation costs for a trainee returning to his homeland on emergency leave will be paid
. by the trainee or his government if he is to return to the U.S. for continuation of training.
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g. Deviations From Planned Travel Routes. When a trainee is permitted by his government to deviate from the most direct route for the purpose of visiting other countries, U.S. sponsorship \,';11 terminate at the point and time of such deviation. Further, should q trainee elect to remain at a point en route to his homeland beyond the time normally required to make travel connections, funding of allowances during that excess time is not authorized.
h. Enroute Accommodations. Accommodations on U.S. installations provided to foreign students enroute will be commensurate with those provided U.S. personnel of equivalent grade.
i. Travel to Non-Resident SAO. SAOs responsible for managing an IMET program for a country in which it is not resident may program transportation to/from that SAO for briefing/debriefing of IMET FMTs, so long as there is no U.S. representation in the country of the I~1ET trainee that could provide the service and when requested by the Ambassador. This does not apply for cost sharing countries.
4. Living Allowances for FMTs. The.IMET living allowance is a standard rate, equally applicable to all countries, and is intended to cover an average cost differential of the trainee living away from his home station. It is not a substitute for normal compensation. Responsibil ity for timely payment of sufficient overall compensation to allow for decent 1 iving standards and effective completion of the training rests with the trainee's country. It is 000 policy to encourage foreign countries to assume the cost of all living allowances so that IMET funds are utilized to permit higher numbers of students to be enrolled in training.
a. Entitlements for Trainees in Trqvel Status. When IMET pays trave 1 and 1 iving a llowance, tra inees are entitl ed to living allowances during travel status, to include the day of departure from home country, through the * day of arrival at their first training location. Living allowance in training (deletio~ status will commence the day after an-ival at the training location. Living allowance in a travel status will resume the day of departure from the last training location and terminate the day of arrival in home country, excluding any leave period authorized by trainee'~ government following termination of training or any unauthorized delay enroute. In no case will the program pay travel costs or living allowances of trainees traveling within their own country. Living allowances will be computed incrementally in accordance with * the JTR on the day of departure from home country and the day of arrival in * home country. *
(1) Transoceanic Costs Borne by Foreign Country. Trainees whose travel to the U.S. is paid by their own government are entitled to living allowances in a travel status to include the day of departure from the U.S. entry port enroute to the training location, through the day of arrival at the training location. Living allowance in a travel status will resume the day of departure from the last training location and include the day of arrival at the U.S. departure point. This policy also applies to FMTs whose country pays a portion of the transoceanic travel costs, e.g., from homeland to London and return.
b. Entitlements for Trainees in Training Status. A living allowance will be programmed for all trainees in a training status, un1ess otherwise directed, as indicated in paragraph F.4. (above). See Table 10-II-2 of this chapter. For programming purposes, a standard factor \'lill be used for
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000 5105.38-M
2. 50 pounds for all other courses.
(b) Packing and Labelling. This material is to be packaged and labelled at the training installation and shipped via the most expeditious means to the SAO of the country for delivery to the FMT, or to the official address for classified material. A copy of the student's ITO will be placed inside the package. Use of the APO/FPO address of the sponsoring SAO is authorized; packages must be addressed to the SAO, not to the FMT. .
(c) Personal/Unauthorized Matter. The training installation will ensure that no personal effects or other unauthorized matter is shipped with the instructional material.
(d) Cost to Students. Students wi sh i ng to send the i r instructional materials via international mail, and/or send instructional materials in excess of the total maximum allowance, will do so at their own expense.
b. Unauthorized Ba~ga,e. Shipment of baggage in excess of the weight allowance contained ina{ ) above is not authorized. Disposition of unauthorized baggage will be made at the expense of the trainee or his government. Commanding officers of the training or administrative installation should ensure that unaL!thorized baggage is shipped at the trainee's expense prior to his departure from the installation. Trainees reporting to ports of departure with unauthorized baggage will be requested to forward the unauthorized baggage by commercial means at their expense. If lack of time prohibits this, unauthorized baggage will be taken into custody by the traffic representative, and the trainee will be given a receipt for the baggage. The trainee will remain on the scheduled flight or carrier. After departure of the carrier, the traffic representative will deliver the unauthorized baggage to the nearest appropriate foreign consulate.
c. Guest Instructors at Panama Canal Area Military Schools (PACAMS [SCIATTS and IAAFA]) and coNOs-OsARSA.
(1) Costs incidental to the use of foreign guest instructors at SCIATTS, IAAFA, and CONUS-USARSA are to be included in the fixed operating * budgets of each school and not included in course tuition costs. These costs (deletion) include travel of guest instructors and their authorized dependents, shipment of household goods and living allowance in accordance with Table 10-11-2.
(2) Shipment of household goods' from the Panama Canal area or CONUS to their home country is authorized for Latin American guest instructors who have completed a tour of duty at PACAMS or USARSA. The net weight allowance is 2000 pounds for married guest instructors and 200 pounds for single guest instructors. A net weight allowance of 4,000 pounds is authorized for married Latin American guest instructors when assigned as Deputy Commandant. In addition to net weights listed above, weight allowances are authorized for crating and packing materials on the same basis as for U.S. military personnel and in accordance with the JTR. Shipment of household goods in excess of authorized net weight will be at the expense of the guest instructor or his
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000 5105.38-r~
government. Shipment will be by surface common carrier. Air freight may be used only when surface common carrier is not available.
6. Uniforms and Personal Clothing. Except for charges for uniforms required for students in the Inter-American Air Forces Academy (IAAFA), furnishing. uniforrns or any items of personal clothing, other than special items of training clothing or equipment, is not authorized.
,.
7. Visits to Canada and Mexicci. Foreign trainees attending instruction in the CONus may be authori zed vi s its of not over 72 hours to Canada and Mexico. They must comply with all immigration and customs regulations. Such visits will not affect the trainee living allowances.
8. Dependents of Trainees. Dependents will be discouraged from accompanying or joining trainees except in those cases where the MILDEP concerned determines for specific trainees and courses that housing and,other amenities are available and presence of dependents will make an important contribution to the student's learning experience. Where dependents are authorized by the MILDEP, i.e., for officers attending selected courses as indicated in Note 4 of Table 10-II-2, a living allowance may be paid in accordance with rates established in this table. In no event, however, will transportation of dependents or medical treatment be at U.S. expense.
9. FMT and Dependent Employment. FMTs and ali en dependents of FMTs are not a110wed to seek employment during their stay in the United States. U.S. Embassy and/or security assistance personnel should make every attempt to explain this fact to FMTs at predeparture briefings in order to discourage such employment. In this connection, U.S. country team personnel should take all action necessary to insure that passports with A-2 Visas or related doculPents concerning FMTs and their alien dependents are not annotated with "Employment Authorized. II
10. Disposition of FMTs in Event of an Emer~ency. In the event of a national emergency, procedures and policy for the dlsposition of trainees and other foreign military visitors in the U.S. and at U.S. installations abroad will be promulgated by DSAA.
G. EXTRAORDINARY EXPENSES. Extraordinary expenses (budget project N60) are defined as those expenses incident to representational activities for FMTs. They include costs of commandant's welcome, receptions, banquets for civilian and military sponsors, class/seminar dining-ins, faculty-student luncheons, graduations, and other similar activities which bridge cultural differences and enhance the relationship between school officials, local community supporting participants, and foreign students while attending courses of instruction in U.S. and overseas facilities. N60 funds are limited by legislation contained in Section 636(g) of the Foreign Assistance Act of 1961 and related appropriation acts.
1. Use in Connection with IP and Orientation Tours. Extraordinary Expense funds may also be used for activities descrlbed in paragraph G (above) in connection with IP ahd orientation tours. Conditions contained in Section E.6. will guide such arrangements. The expenditures of N60 funds for other than students sponsored under IMET is not authorized. However, joint activities with FMS funded foreign trainees are often cost effective. In that
10-26 Change No.7, 15 September 1986
*
000 5105.38-M
level with priority 0 having the higher priority. Valid training priority coded 0 and E is defined as training in keeping with IMET policies and objectives, that MILOEPs can accommodate, for which the host country can provide qualified candidates and which has a dollar value that the SAO can reasonably expect to receive at mid-year/end-of-year if funds are available. In most cases, this should not exceed approximately 10 percent of the budget level. SAGs should code all training lines in a WCN series to reflect the code of the program line with the highest priority within that series.
3. Initial Fundin of Current Year Trainin Pro ram. As soon as the apportionment 0 un s lS recelVe rom t e lce of Management and Budget, OSAA will fund all priority codes A, B, and C within the apportioned funding/allocation level. SAOs should ensure that priority codes are appropriately adjusted so that the total of all priority A, B, and C training lines equals the allocation level. Adjustment of prioritization will be required if the apportionment level is less than the budget request level.
4. Additions/Increases to Current Year Program. If subsequent ad-ditions/increases to current year programs will cause the funded program to exceed the country allocation level, the SAO should simultaneously (1) submit deletions of funded lines sufficient to offset requested funding and/or (2) forward programming to lower the priority codes of selected funded lines to 0 or E. In the latter case, OSAA will withdraw funding of those lines and they will remain the program in an unfunded status.
5. Mid-Year Review of IMET Allocation Levels. Unified Commands will provide comments and recommendations concerning the status of individual country IMET allocation levels to OSAA by 15 May. Unified Commands will (1) identify those countries that will not be able to utilize all of their currently allocated IMET levels and recommend revised country allocation levels; (2) identify those country programs that have valid training requirements (as defined in paragraph 2 above) above currently allocated IMET levels and recommend corresponding increases to country allocation levels; and (3) those country programs that will require no change in allocation levels. Recommendations for increases will be prioritized within each Unified Command and will * include a descriptive narrative to identify the type of training and number of * students associated with the dollars requested. Specific WCN numbers should * be identified. Unified Commands will ensure that SAOs submit appropriate * program additions/changes reflecting priority codes 0 or E and quarter availability no earlier than the fourth quarter for those countries that are recommended for increases.
6. End-of-Year Review of IMET Allocation Levels. Unified Commands will provide comments and recommendations concerning the final country IMET allocation levels to OSAA by 1 August. The same procedures used for the Mid-Year Review will apply.
7. Training Analysis Codes. Training Analysis Codes allow training program data to be grouped by categories that facilitate analysis of country IMET programs as they relate to overall IMET objectives. These codes replace the material-oriented generic code structure for training and enable the training community to match countr'y requirements with pol icy considerations, particularly in the preparation of two year training plans and training AIASA's. A complete listing of all Training Analysis Codes is at Table 10-II-4. The nine primary analysis code categories are:
10-29 Change No.7, 15 September 1986
Category
PME MGT PGS UPT/FLT TECH
OT OCONUS TEAMS SUPPORT
Description
Officer Professional Military Education Officer Management
DoD 5105.38-M
Officer Postgraduate/Degree Related Training Undergraduate Pilot and Other Flight Training Technical, Operations, Maintenance, Medical and Enlisted Training Orientation Tours OCONUS Student Training Mobile Training Teams and Field Training Services English Language Equipment, Materials, PCH&T, Medical Lines and other Training Support
L. PROGRAM DEVELOPMENT AND SUBMISSION.
1. Purpose. The following provides guidance and instructions governing the preparation and submission of detailed program data, including changes thereto, and the conversion of these data into approved and funded programs authorized for implementation by the MILDEPs. Further, more specific programming guidance is contained in paragraph K of this section.
2. Development Guidance.
a. Sources. In addition to guidance and instructions contained in this manual, the following documents provide information for the development of training programs: (1) The Military Articles and Services List (MASL), and (2) JSAT Regulation (AR 12-15, OPNAVINST 4950.1H, and AFR 50-29).
b. Refi nements of Bud et Yea r Pro ram. The refi nement of the budget year program s ou e accomp 1S e at t e training workshops. The workshops are hosted by the Unified Command, with representation from DSAA and MILDEPs for the purpose of determining training capabil ity and to provide policy and procedural and technical advice concerning the programs proffered by the SAOs on behalf of their host countries. MILDEPs submissions of refined budget year and plan year training requirements resulting from the training workshop revi ew wi 11 be completed and processed to DSAA by 15 Apri 1.
c. Availability of Detailed Data to MILDEPs. Detailed training data for the first plan year program will be made available by SAOs to MILDEPs for processing to DSAA by 15 September, or as may be directed.
3. General Programming Instructions. In addition to individual courses of instruction available from MILDEPs for foreign students, other categories of training assistance which may be required in developing the program are contained in the MASL in line-item detail. A summary of all categories of training N10 through ·N70 is shown in Appendix D, Table D-9 of this manual. This summary provides a reference for identifying specific training contained in the MASL.
4. Submission of Program Data. Training requirements under H1ET will be recorded in the DSAA 1000 system. Training data for these programs will be maintained current by continual updating by the SAOs.
10-30 Char.ge No.7, 15 September 1986
000 5105. 38-M .
living allowance while in a travel status. Note: In all cases students are required to travel over the most direct, least cost route.
(3) Living Allowances While in Training Status. A living allowance will be programmed for all trainees in a training status, unless otherwise directed, as indicated in paragraph F.4. of this section.
(4) Special Instructions.
(a) Cross Training, Sequence or Prerequisite Training. Cross training, sequence trainlng, or prerequisite training is training following an initial course of instruction or preceding a course of instru~tion (prerequisite), without the trainee returning to home country between courses. When programming of this type is required, column 65 of cards 4 or Q is to be used by program originators to indicate whether the training is a single line item or whether cross training is involved. If cross training is programmed, the letter "All will be entered in column 65 for the initial course, the letter "B" will be entered in column 65 for the second course, the letter "C" for the third course, and so on in alphabetic sequence. ~~hen English language is programmed as a prerequisite course, the worksheet control number suffix (column 65) will be the letter "L," and the courses following will have worksheet control number suffixes A, B, C, etc. Each course will be cos ted separately. Course IIAII will be charged with the round trip transoceanic travel costs and the round trip CONUS costs from U.S. port of entry to * the first training location and from the last training location to U.S. port * of exit. For sequential training conducted at another location, the best * estimate of transportation costs will be programmed. ~~hen Engl ish language training is a prerequisite, the cost of round trip will be included in the IIAII line computed on the basis of the location of the "LII line. The living allowance while in a training status will be costed separately for each course in accordance with paragraph Ib(3) above.
(b) Cross-Service Training. Cross-service training is a training series for a foreign student providecrby more than one U.S. military service.
1. Training in Schools of Another Service. When a trainee from one foreign military service is selected for training exclusively within schools of another U.S. military service, such training will be requested in the program of, and administered by, the U.S. military service providing the training.
2. Training in Schools of More Than One Service. When a trainee is selected for tralmng involving courses of more than one military service, the training will be programmed by the service providing the majority of the training (excluding English language training). .
3. Orientation Tours to U.S. Installations of More Than One Service. Orientation tours to U.S. military lnstallations of more than one military service will be programmed and administered by the U.S. military service corresponding to the military service of the trainee(s) or ·by the service having predominant interest.
10-37 Change No.7, 15 September 1986
DoD 5105.38-M
4. Joint Service Courses. Joint service courses will be included in the program of the service having administrative agency responsibility for the course.
(4) Cancellation of Training - Penalty Char~e. Rescheduling or cancellation requests must be received at least 60 days 1n advance of the scheduled course start date. In the event cancellation or reschedul in9 is requested less than 60 days prior to the scheduled start date, the country's IMET program wi n be charged 50% (100% of contract training cost) of the tuition rat~ for cancellations or a proportionate share of the tuition rate for trainees not completing a course of instruction, for courses which fall within that 60 day period. Penalty charges will be determined by MILDEPs and requests for waivers to these penalty charges should be addressed to the responsible MILDEP. The cancellation penalty will not be applied when (a) cancellation is due to the fault of the U.S. (deletion of classes, rescheduling, etc~), (b) cancellation is due to unavoidable circumstances within country, such as national disaster, or (c) cancellation entails no loss to the U.S. in terms of cost or training capability. These charges are to be programmed for applicable courses, and will be earmarked by an "S" in column 65 to indicate that a penalty fee was charged for that particular training line. MILDEPs may also use "m for attrition, "U" for recycle or setback, and "V" for "no show."
(5) Orientation Tours.
(a) TLA Entries. The TLA entry for columns 51-56 should be computed as the composite cost of living allowances, transportation based on itinerary, and excess baggage. A total of 100 pounds is authorized.
(b) Escort Officers. An escort officer may be programmed for orientation tours. A factor of $600.00 per man week will "be used and entered under TLA in columns 51-56.
(c) Livin Allowances for Partici ants in OCONUS Orien-tation Tours. A factor 0 • perman wee W1 e use to cover trave and living~al10wance in the overseas area where the tour is being conducted. The $100.00 factor will be added to the cost of the round trip travel and the total" amount per personnel space will be entered in columns 51-56 of cards 4 or Q.
(d) Observer Training. The procedures above do not apply to observer training. Observer training will be cos ted in the normal manner described in paragraph lao above.
(6) Temporary Duty Costs. A factor of $1,000 per personnel space may be added to cover the cost of temporary duty travel for country liaison officer, when programmed.
2. Formal Trainin Overseas (O/S) (Generic Codes N1N - N1W). The same two cost e ements eSCrl e 1n paragrap . um prlce an TLA), are involved in determining the total cost entry in columns 73-80 for students who will train at overseas schools and facilities. The" course cost shown in the IMET MASL will be entered in columns 36-43 of cards 4 or Q. The TLA factors
10-38 Change No.7, 15 September 1986
000 5105.38-M
, for overseas training al so differ from United States training and are de~cribed below, by Command.
a. U.S. European and Pacific Commands.
(1) Travel Costs. ..
(a) Trainees in Own Country. Each country will P9Y its own transp,artation for those trainees training "in their home country. '.
(b) Training Costs for Sequential Training.' Travel costs for courses subsequent to the original course will not be included; however, $50.00 per trainee will be added for travel (including living allowance during travel) for courses which follow the initial course and are conducted at a different location.
(2) Living Allowance While in Training Status.
(a) Trainees Training in Their Own Country.· Each country will pay its own living allowance rates tor trainees training in their, home country.
training is programming computed at
(b) Trainees Training Outside Their Own Country. If conducted at a location other than withln thelr home country, the factor for living allowance while in training status will be
the applicable JTR rates.
(c) Sequential Training. In some cases students have a waiting period before entering a follow-on course. The living allowance is authorized for the waiting period, and will be included in the TLA for the follow-on course.
b. U.S. Southern Command.
(1) Living Allowances While in Training Status.
(a) Pro rammin Schoo 1 s (PACAMS). The programml ng students while in training status at U.S. service schools in the Panama Canal Area Navy Small Craft Instruction and Techni ca 1 Tra ining School (SCIATTS) and Ai r Force Inter-Ameri can Ai r Forces Academy (IAAFA) wi 11 be comput'ed at the rate of $98.00 per week for officers and $75.00 per week for enlisted personnel.
(b) Reimbursement to MILDEPs for Enlisted Personnel Services. Not all of the $75.00 per week programmed for enlisted personnel is paid to the student. The rate of daily living allowance payment .. is shown in Table II of this chapter. The remainder is reimbursed to the appropriate MILDEP for student laundry and subsistence. '
(c) PACA~1S Trainees from the Republic of Panama. Pana,.. manian trainees attending PACAMS or other training conducted in the Republic of Panama will be paid living allowances for periods of training only if they reside in quarters provided by the U.S. Government.
10-39 Change No.7, 15 September 1986
000 5105.38-M
(2) Special Instructions.
(a) OJT/Observer Training. A living allowance while in a training status will be paid by IMET. living allowances will be programmed in accordance with paragraph b.(l), above.
c. Third Country Training. Third country training should be encouraged, with the two participating countries making their own arrangements for the training and associated costs.
(1) Tuition Funding by the U.S. When it is considered necessary that tuition costs be funded by the U.s., the SAO, in coordination with the Chief of the Diplomatic Mission, should submit a request for offshore procurement certification, in accordance with 000 Directive 2125.1, to the Di rector, DSAA, with information copies to the appropri ate MILDEP, Unified Commander, and Component Commander.
(2) Reguests for Offshore Procurement Certification. The request for offshore procurement certificationshoulcl include a detailed description of tuition costs and training services to be provided. In no case will costs include items acquired under the security assistance program by the country providing the services.
(3) Commitments for Third Country Training. No commitment to the third country offering the training will be made until the request for offshore procurement certification is approved. SAOs will use the fund citation contained in the student ITO to provide reimbursement of tuition costs to the country furnishing the training.
N. IMPLEt·1ENTATION. Program implementation and the movement of trainees to training facilities and activities is authorized only after IMET orders, program directives, or other specific approvals are issued by DSAA. Such orders, directives, or approvals are required prior to the issuance of ITOs or the obligation of funds for programmed training. When necessary in cases of emergency, requests for approval to issue ITOs prior to receipt of IMET Orders will be submitted directly to DSAA, and authorized via message or telephone by DSAA Comptroller.
1. IMET Orders.
a. Purpose.
(1) Definition. The term "IMET Order" is used to describe the document iss4ed· by DSAA which authorizes and directs the furnishing of military training to designated IMET recipients. It also identifies the fund source for each program line. For example, FY 1984 funding is indicated by a "4" in column 71 to indicate funding from the 1984 appropriation.
10-40 Change No.7, 15 September 1986
000 5105.38-M
SECTION II - FOREIGN MILITARY SALES TRAINING
A. PURPOSE.
1. This section provides guidance and instructions for providing military training to eligible foreign countries and international organizations as authorized under the Arms Export Control Act (AECA).
2. Basic guidelines for FMS training are similar to those for iMET (see Section I). This section addresses training matters which are unique to FMS training or which require some change from IMET procedut'es. Detailed FMS training programming instructions are provided by each MILDEP.
B. BASIC GUIDELINES.
1. AECA Provisions. a. Nature of Training. Training includes both formal and informal
instruction of foreign students in the United States or overseas by officers or employees of the United States, contract technicians, or contractors (including instruction at civilian institutions), or by correspondence courses; technical, educational, or information publications and media of all kinds; training aids, orientation, training exercises; and military advice to foreign military units and forces.
b. Prohibitions. Personnel providing defense services (including training) are prohibited from performing duties of a combatant nature by the AECA, Section 21(c). This precludes activity related to training and advising which may engage U.S. personnel in combat activities, outside the U.S., in connection with the performance of defense services. This prohibition is applicable only during hostilities involving the country where the training is taking place.
c. Reimbursement. In compliance with prescribed pricing cate- * gories, the cost to the OSG in furnishing FMS training must be paid by the * foreign purchaser. Payment must be cash on acceptance, unless a determination is made in the national interest that payment be made prior to "performance" of the training. For billing purposes, formal training is considered "performed" on the date that the student enters the course or, ;n the case of Mobile Training Teams (MTTs) or Field Training Services (FTS), when a team member leaves his home station. At all times, there must be cash available to the 000 in advance of the performance of the training. Normally, a trainin~ case for the current fiscal year will not be used to fund any element of the training case for the following year.
d. Bilateral, Combined, or Multilateral Exercises. Bilateral, combined, or multilateral exercises conducted to test and evaluate mutual capabilities do not require authorization or funding under the AECA. Costs of foreign participation in these exercises may not be paid directly or reim~ bursed from 000 funds, including O&M funds. 000 funds may be used to pay just the costs of U.S. armed forces participation Which would have been incurred in the absence of foreign participation in the exercise. The costs of any U.S.
10-45 Change No.7, 15 September 1986
DoD 5105.38-M
support provided to the participating countries or international organizations for training exercises must be reimbursed under an FMS case. This is b~cause pro~iding exercise support is providing a defense service as defined in the AECA, Section 47(4) and Section 47(5).
e. Separate and Specific Statutory Authorization. Outside the context of an exerciSe, OSG costs of providing training for foreign military or paramilitary personnel must be borne by the foreign government or international organization under an FMS case. If there is separate and specific statutory authorization for such training, as in the case of the senior ROTC program or U.S. service academies, this general rule may not apply. Existing authority and regulations do not per'mit formal or informal training on a
. non-reimbursable or quid-pro-quo basis. This includes orientation, observation, or familiarization tours, as opposed to short formal visits.
2. FMS Training Initiation and Program Development Seguence.
a. Initiation. The same general initiation and annual progralT11i1ing process appl ies to F~1s training as appl ies to IMET. Foreign purchasers may initiate training requests through normal FMS channels as they would for any other defense service. Requests for establishing new FMS training programs in coul'ltries where no FMS training program previously existed should be made through the Ameri can Embassy to the Department of State, with a copy to the Secretary of Defense· (DSAA). Foreign governments (host-country defense establishments), with the help of the SAO, are encouraged to develop annual FMS training programs.
b~Annual Country Program Review. Except for some countries with large, complex FMS programs, annual FMS training programs should be reviewed and, where appropriate, integrated with the country's IMET requirements during the unified command trainlng workshop. Programs presen,ted by the country representatives should be fully coordinated with host governments and, to the extent practiceal, represent the country's annual training requirements. FMS programs will be accepted for planning and for allocating quotas. When appropriate, programs may also be accepted as requests for LOAs. FMS training should be scheduled annually through regular workshop procedures.
c. Fund Deposits. A 25 percent deposit is normally required for annual training cases using open-end LOAs in excess of $25,000. Full payment in advance is ,required on cases less than $25,000, or where the training is less than 90 days duration. Countries having both IMET and Fr~S training programs should ensure that the programs complement each other.
d., Uripro~rammed Re9u;rements. Unprogrammed FMS traininQ requi~ements, not lncluded 1n the annual program, are handled on an exceptl0n baS1S. Un~chedJled requirements' have an adverse impact on the total training effort. This is particularly true in the case of courses where quota availability is a major constraint, for short notice assignment of MTT personnel from operational units for specialized requirements, or the preparation of tailored curricula. ' Unprogrammed training requirements distort planning and make forecasting ineffective. ,Annual training programs should, therefore, be adhered to as initially developed and reviewed at workshops, with add-ons by the host gov-~~nment during the program year being generally discouraged.
10-46 Change No.7, 15 September 1986
DoD 5105.38-M
ADDITION CHANGE DELETION CARD 4 CARD g CARD R COLUMN
TABLE OF DAILY SUPPLEMENTAL LIVING ALLOWANCES FOR IMET FOREIGN MILITARY TRAINEES
DoD 5105.38-M
OFFICER ENLISTED(I) [And Civilian Equivalents]
In Travel Status, Including Unscheduled Delays(2) ••••••••••••••••••••••••••• Various
In Training Status: Senior PME Students with either Quarters and
Mess Available or Dependents Authorized (3)(4) Dependents Authorized (4)(10) •••••••••.•••••••• Neither Quarters Nor Mess Available ••.••••••••.• Orientation Tour Participants (5) ••••••.•••••••• Mess Available, Quarters Not (6) •.•••••••••••••• Quarters Available, Mess Not (6) ••••••••••••.••• Both Quarters and Mess Available (6)(7)(12) ••••• Both Quarters and Mess Available,
Officers Charged for Mess (Aboard Ship) •••.••• Both Quarters and Mess Available,
Free of Charge (Aboard Ship) •••••••••••••••••• In Military Hospital (8) •••••••••••••••••••••••• On Leave (10) .••••••••.•.•••••••.•••••••••.•••••
NOTES:
$45 40 40 27 27 24 17
12
9 9
Various
Various
N/A N/A 40
N/A 22 20 9
N/A
9 9
Various
(1) Not applicable to enlisted foreign military trainees (FMTs) attending training at the Small Craft Instruction and Technical Training School (SCIATTS) or the Inter-American Air Forces Academy (IAAFA). The daily living allowance rate authorized for these enlisted FMTs is $3.50 per day.
(2) Travel allowance rate is authorized to include the day of arrival at, and day of departure from, training installation except for FMTs who receive no U.S. Government living allowance. Rates on travel status, including unscheduled delays, are based on rates equal to those in the JTR for U.S. personnel.
(3) This rate is authorized only for FMTs attending senior level professional military education courses as follows: Army Command and General Staff College, Army War College, and National Defense University; Air Force Command and Staff College and Air War College; Naval Staff College and Naval Command College; USMC Command and Staff College, Armed Forces Staff College; and USARSA Command and Staff College.
(4) This rate is authorized only for accompanied FMTs attending the fo11owing courses designated by the MILDEPs: Army Command and General Staff College, Army War College, and National Defense University; Air Force Squadron Officer School, Air Force Command and Staff College, Air War
TABLE 10-11-2. Table of Daily Living Allowances for IMET FMTs.
10-60 Change No.7, 15 September 1986
**
DoD 5105.38-M
College, and Air Force Institute of Technology; Naval Staff College, Naval Command College, and Naval Postgraduate School; USMC Command and Staff College, Armed Forces Staff College; and USARSA Command and Staff College. This rate is also authorized for prerequisite courses, follow-on courses, and authorized leave periods. This rate is applicable regardless of availability of quarters and is payable whether FMT lives on or off post.
(5) Meal Allowance Only. Cost of quarters to be paid from programmed funds by Class A agent/cashier escort officer.
(6) In overseas areas, including Hawaii where U.S. Government quarters and mess are not available, the rates authorized are equal to those authorized for U.S. personnel in the JTR. "Quarters Availa.ble" means that U.S. Government quarters were either furni shed or made avail ab 1 e. "Mess Available" means three meals per day were available in a U.S. Government mess, whether or not actually consumed. U.S. Government mess excludes open mess and is not considered available to officer FMTs except during maneuvers, field exercises, training in the field or when an officer's field ration mess is specifically available (e.g., officers field ration mess is available at Lackland AFB and Maxwell AFB, both with a heavy student load). MILDEPs will be reimbursed from IMETP funds for costs of meals and quarters furnished free of charge to eligible FMTs. All FMTs not authorized a U.S. Government living allowance will pay for their meals. Meals taken in other food service facilities will be paid for by the FMT at the menu rates.
(7) Enl i sted students from countries that parti ci pate in cost-sharing of travel and living allowances who are not entitled to meal cards may receive per diem in an amount greater than $9. A higher rate is authorized as long as the programmed rate is less than the $9 plus the daily cost of mess hall meals. When the programmed rate reaches or exceeds the $9 plus the cost of meals, students will be issued meal cards and will be paid $9 per day.
(8) In those cases where an officer FMT is authorized an increased living allowance for accompanying dependents and is subsequently hospitalized, an increased living allowance ($40) shall apply during period of hospitalization rather than the reduced rate specified herein.
(9) Living allowance for leave periods following termination of training is not authorized. Leave with living allowances may be granted during periods of class breaks, authorized holidays, between consecutive courses and delays at a port whi 1 e awa iti ng transportati on at the rate that is appropriate to the training status.
(10) This rate is authorized for guest instructors at CONUS-USARSA. (11) The rate of IMET living allowance for guest instructors at PACAMS
(SCIATTS and IAAFA) will be the minimum necessary as determined by the appropriate MILDEP agency but not to exceed the rates authorized for students.
TABLE 10-11-2. (continued)
10-61 Change No.7, 15 September 1986
000 5105.38-M
TABLE 10-11-3
MILDEP EXECUTION AGENCY IDENTIFIER CODES
A. ARMY EXECUTION AGENCY (EXA) CODES.
The EXA code used by the Army is a three digit alpha numeric wherein the first alpha represents the Army (B), the second alpha the funding agency and the the third alpha or numeric the training agency. The following codes are to be used for Department of the Army IMET programming.
B. Department of the Army.
A. U.S. A. B.
C. D.
E. G. H. K. L.
M. N.
P.
Q. R.
,So
T. U. V.
W. X. Y. 2.
3. 4. 6. 7. 8.
Army Material Development and Readiness Command (DARCOM) Army Logistics Management Center, Ft Lee, VA Army Management Engineer Training Activity, Rock Island, IL . Army Defense Ammuniti on Schoo.l, Savanna, IL Joint ~lilitary Package Training Center, Aberdeen Proving Ground, MD Army Tank-Automotive Command, Warren, MI . Army Depot Systems Command, Chambersburg, PA Letterkenny Arrr~ Depot, Chambersburg, PA Lone Star Ammunition Plant, Texarkana, TX Army Test and Evaluation Command, Aberdeen Proving Ground, MD New Cumberland A.rmy Depot, New Cumberland, PA Army Troop Support and Aviation Material Readiness Command, St. Loui s, MO ' Army Mobility Equipment Research and Development Command, Ft. Belvoir, VA Pueblo Army Depot, Pueblo, CO Army Natick Research and Development Laboratodes, Natick, MA Army Electronics Research and Development Command, Adelphi, MD Army Communications Electronics Command, Ft. Monmouth, NJ Red River Army Depot, Texarkana, TX Army Aviation Research. and Development Command, St. Louis, MO Tobyhanna Army Depot, Tobyhanna, Pt\ Tooele Army Depot, Tooele, UT Yuma Proving Ground, Yuma, AZ US Army Security Assistance Center (USASAC), Alexandria, VA Anniston Arn~ Depot, Anniston, AL . Dugway Proving Ground, Dugway, UT Corpus Christi Army Depot, Corpus Christi, TX Army Armament Research and Development Command, Dover, NJ Army Armament Material Readiness Command, Rock Island, IL
B. LEGAL LIMITATIONS. Neither the SECDEF (DSAA) nor the Unified Command, or the sAO, have the legal authority to consent on behalf of the President either (1) to the use of MAP materiel by anyone not an officer, employee, or agent of the recipient government, or to the transfer of such material by any means to anyone not an officer, employee, or agent of the recipient government, or to the use of such materiel for purposes other than those for which furnished as identified in section 502 of the FAA, or (2) to other disposition of such materiel than the return to the United States Government without charge when such materiel is no longer needed for the purposes for which furnished. These two Presidential functions under section 505(a)(1) and section 505(a)(4) of the FAA have been delegated to the Secretary of State by section 1-201(a)(4) of Executive Order No. 12163. Requests for consent under these statutory provisions should be addressed to the Secretary of State through diplomatic channels with an information copy to the Director, DSAA.
C. SUPERVISION OF END-ITEM USE AND MAINTENANCE OF INVENTORIES. SAOs assigned to countries which were the recipients of grant aid material (MAP) under programs initiated prior to FY 1982 are required to monitor the status of such materiel. As a minimum, this normally will consist of an inventory maintained by the SAO and updated at least annually by the foreign government, of major items of MAP origin held by the foreign armed forces, with estimates as to when the items are expected to become excess to the foreign force needs. Major items normally will include aircraft, ships, radar, armored vehicles, general purpose vehicles, artillery and mortars, missiles, and such other items as the SAO Chief deems appropriate. SAOs shoul d encourage the host country to declare MAP equipment excess when it is no longer needed. The Unified Commander may modify these instructions to accommodate the situation in a particular area or country.
1. Action b* the Chief of the SAO. End-item utilization (inventory) reporting (to DsA , with an ;nformatl0n copy to the unified command) is required only if discrepancies are uncovered. These end-item utilization responsibilities normally do not require dedicated travel for inspection purposes and must be undertaken with resources assigned or otherwise available primarily for other purposes. Noting the presence and util ization of U.S. origin equipment should be done during the course of other duties and end-use inspection or MAP-related functions will not justify SAO personnel authorizations. Note that end-use observation and reporting extends to items of U.S. origin acquired other,than through MAP, although there is no requirement to seek periodic reports from the host government on such items. When MAP materiel is declared excess to the needs of its armed forces by the holding foreign country, the SAO or other DoD element responsible for MAP administration in the country will determine its condition. To the extent practicable, the determination will be based on physical 'inspection by' qualified U.S. personnel. In the case of lack of resources, however, classification by the foreign government authorities may be accepted.
a. Economic Repairability. Economic repairability will be determined in accordance with DOD Instruction 7220.21.
(1) Standard Condition Codes. Standard condition codes as set forth in the Defense Disposal Manual (000 4160.21M) will be used.
11-3 Change No.7, 15 September 1986
DoD 5105.38-M
(2) Unserviceable Equipment. If materiel declared excess by the forei gn country is determi ned to be unservi ceab 1 e and not economi ca lly repairable by overseas standards, it will be treated as disposable MAP property and processed in accordance with paragraph (4), below.
(3) Screening Excess Against Other In-Country Reguirements. SAOs will screen reported excess MAp materiel against other MAp user requirements within the recipieDt country. Where such requirements exist and where the MAP property would continue to serve a MAp· purpose, the SAO Chief may authorize continued. use within the country. The SAO will maintain local records of internal transfers made under the authority of the paragraph identifying the item, quantity, materiel condition, and the loaning and gaining MAP elements.
(4) Reports, of Non-Redistributed MAP Excess. If excess MAP materiel is not redistributed within the holding country, the Chief of the SAO will report major items (programmed as "each" items 1 isted in the MASL with unit of issue other than "XX") and secondary items, with a value of $1,500 or more per line item value, to the designated agency in the format specified by MILDEP directives with information copy to the Unified Command. Excess reports will include recommendations for disposition by the Chief of the SAO, as appropriate.
2. Action by the MILDEP. The MILDEPs will provide detailed procedures for reporting and screening MAP excess major and secondary items (including standard and non-standard materiel) under their cognizance. Procedures shall include identification of reporting channels, screening agencies, and reporting formats.
a. Worldwide Screening of Major and Secondary MAP Excess Materiel. Major and secondary MAp excess materiel will be screened by the MILDEP against worldwide security assistance requirements. Should such requirements not exist however, the following actions will be taken:
(1) Major items will be offered under the Major Item Materiel Excess (MIMEX) system.
(2) Secondary items will be screened for not more than 30 days against other MAP requirements within the reporting theater.
. b. Post Screenin~ Actions. Upon conclusion of screening, all requirements received from t e sAOs will be reviewed. Appropriate transfer actions will be initiated by the MILDEPs pursuant to allocations of major items by DSAA. Redistribution actions for secondary items will be initiated by the cognizant MILDEP in accordance with estab1 ished procedures and priorities. Comments on an ,exception basis from the unit"ied command shall be considered in making redistribution decisions.
c. Disposition of Non-Allocated Items. Major items not allocated under MIMEX, and .all secondary items not required for security assistance requi rements wi 11 be uti 1 ized by the MILDEPs to meet other than MAP requi rements as appropriate. Any materiel not so utilized will be reported to the Defense Reuti1ization and Marketing Service (DRMS). *
11-4 Change No.7, 15 September 1986
000 5105.38-M
payable in the currency of that country, including all costs relating to the financing of international, educational, and cultural exchange activities in which the country participates under the programs authot'ized by the Mutual Education Cultural Exchange Act of 1961. In the case of items which were * delivered prior to 1975, the President may waive the requirement that such net * proceeds be paid to the United States Government if he determines that to do * so is in the national interest of the United States. 1I *
b. The FAA, Section 505{f) does not legally affect paragraph~,",,",. F.2.a. method of disposal or alter the requirements of the FAA, Section 605(d) with regard to deposit of sale proceeds exclusively in the parent MAP account.
c. The FAA, Section 505(f) extends to disposals by the recipient countries of MAP origin defense articles if such countries were the recipient of grant aid materiel after 1 July 1974 whenever the articles were originally granted to any such country, even if granted prior to date of agreement required under Section 505(f). IINet proceeds ll means the balance of the gross proceeds of sale to be paid to the U.S. Government after reasonable administrative costs of the sale of MAP origin equipment are deducted by the foreign government.
d. The FAA, Section 505(f) constitutes a condition of eligibility for recipients of grant'defense articles programmed in FY 1975 and subsequently. A mandatory agreement pursuant to Section 505(f), was concluded with the countries which were programmed to receive grant aid defense articles after 30 June 1974, even though disposals may be made by DPDS in most, if not all instances.
e. For countries other than those in d. above no agreement pur-suant to the FAA, Section 505(f) ;s legally required so long as no grant defense articles were programmed for them after 30 June 1974. Nevertheless, defense policy with regards to such other countries is to require (unless an agreement with a particular country in force on 30 June 1974 provides to the contrary) a recipient country commitment to return to U.S. Government (for deposit in Treasury miscellaneous receipts, along with funds received by U.S. Government under the FAA, Section 505(f)) the net proceeds of sale whenever such country requests release of disposable MAP property to it.
) 2. Methods of Dis~osal. Assuming an. item has survived screening for further utillzat;on and as been determined to be disposable MAP property, it may be disposed of in one of two following methods:
a. Disposal Through Defense Reutilization and Marketing Office * (DRMO). This method ;s in accordance wlth the provisions of the Defense Disposal Manual (000 4160.21M) through the DRMOs, in which case net funds * generated thereby are deposited in the parent MAP account. The FAA, Section 605(d) provides: IIFunds realized by the U.S. Government from the sale, transfer, or disposal of defense articles returned to the U.S. Government by a recipient country or international organization as no longer needed for the purpose for which furnished shall be credited to the respective appropriation, fund or account used to procure such defense articles or to the appropriation, fund, or account currently available for the same general purposes. 1I
11-7 Change No.7, 15 September 1986
000 5105.38-M
b. Country-to-Country Special Arrangements. This method is in accordance with the provisions of special country-to-country disposal arrangements under which the MAP recipient country disposes of disposable MAP property.
c. Preferred Method of Disposal. It is preferable from the 000 standpoint to use the Defense Reutilization and Marketing Servic~ for disposal * of disposable MAP property. However, in many cases it ;s not practical to exercise this option, either because there is no DRMO in-country or for * practical reasons it may be more desirable to have the country dispose of the item. In some cases, agreements with the country require disposal by the country if no U.S. Government utilization is found.
3. Demilitarization of Disposable MAP Pro~erty. Where munitions list materiel is' involved, regardless of its economica recoverability, if the SAO is unable to ensure by physical inspection that appropriate demilitarization has been accomplished in accordance with the criteria specified in 000 Manual 4160.21, the materiel will be recovered by the U.S. and disposed of through the U.S. DRMS. *
SECTION III - SECTION 506 SPECIAL AUTHORITY
A. PURPOSE: This section provides procedures for emergency drawdowns authorized under Section 506 of the Foreign Assistance Act of 1961, as amended.
B. SECTION 506(A).
1. Law: If the President determines and repOI"ts to Congress in accordance with~ction 652 of the FAA that:
a. An unforeseen emergency exists which requires immediate military assistance to a foreign country or international organization; and
b. The emergency requirement cannot be met under the authority of the Arms Export Control Act or any other law except this section; he may direct, for the purposes of this part, the drawdown of defense articles from the stocks of the Department of Defense, defense services of the Department of Defense, and military education and training, of an aggregate value not to exceed $75,000,000 in any fiscal year.
2. Inter~retation: Section 506(a) provides neither .funds nor contract authority. Itoes not authorize new procurement for contracting in order to provide or replace the material, services or training directed. It only authorizes the drawdown of material from Department of Defense stocks and the provisions of non-contractual services and training from Department of Defense resources for grant as mi 1 itary assi stance. under Part II, FAA. The non-contractual services and training costs include TOY costs incidental to provisions of such services or training. Reimbursement will be dependent upon subsequent appropriation action. Assistance furnished under Section 506, FAA,
11-8 Change No.7, 15 September 1986
DoD 5105.38-M
3. Duration.
a. Not to Exceed Five (5) Years. Leases shall be for a fixed duration of time not to exceed five years and shall provide that, at any time during the leasing period, the USG may terminate the lease and require the immediate return of the defense article{s). Leases of less than five years may provide for renewals but the total lease period may not exceed five years. The lease period will normally begin when the foreign country signs the lease, and provides payment for any required initial deposit, unless the lease period is otherwise specified within the lease terms and conditions.
b. Extens ions. Extens ions of 1 eases beyond fi ve years by mutu'a 1 agreement are authori zed; however, each extens i on wi 11 requi re the cogni zant DoD component to submit a separate determination to the DSAA for staffing and signature, along with the revised lease to identify the terms and conditions of the extension. For those extensions which meet the one year Congressional reporting requirement, the DoD component will also provide to the DSAA the required reporting data in the format at Figure 12-1-4 at least 60 days prior to the projected date for providing the lease renewal to the foreign country or international organization.
c. Renewals of Title la, USC 2667 Leases. Existing leases under title la, USC 2667 may continue until expiration or termination. Extensions based on the provisions of title la, USC 2667 are not authorized. Where extensions or renewals are determined to be in the U.S. public interest, the leasing provisions of the AECA, Chapter 6 and the procedures detailed in this chapter will apply.
4. Loss, Destruction, or Damage. Lease terms will make provision for payment for the loss or destruction Of leased articles during the lease period in accordance with the AECA, Chapter 6. Lease terms will also require the lessee to pay the cost of restoration or replacement if the articles are damaged, lost, or destroyed while leased. Such costs will be recouped under an FMS transaction. The replacement cost will be specified as a fixed sum in the lease agreement and will normally be developed based on the same considerations as payment in paragraph 5, below.
5. Rental Parment. The country or international organization must pay in lJ. S. do" a rs a 1 costs incurred by the U. S. Government in 1 eas i ng such arti cl es, incl uding reimbursement for depreciati on of such arti cl es while leased (the rental payment). The charge for depreciation will be based on the current procurement value, actual acquisition cost (if known), or latest procurement cost. If there is a current procurement contract in effect for the DoD component for an item which is identical to the property to be leased, the current procurement price will be appl ied, adjusted as appropriate for condition; otherwise, the actual or latest procurement cost will apply, adjusted as appropriate for condition and market value. An administrative charge will not be applied to rental payments collected under the lease.
6. Certificate of Delivery. For the delivery of major items under AECA, Chapter 6 1 ease agreements DSAA or the respons i b 1 e DoD component may require a certificate of delivery when custody of the defense article{s) is/are transferred to the foreign customer. The certificate at figure 12-1-12 will be used in such instances.
12-3 Change No.7, 15 September 1986
DoD 5105.38-M
7. Exceptions. The provisions of paragraphs B.4. and B.5., above shall not necessarily apply to leases entered into for purposes of cooperative resedrch or development, military exercises, or communications or electronics interface projects, or to any defense article which has passed three quarters of its normal service life. Where a DoD component recommends an application of authoiized exceptions, express authority will be requested from the DSAA, identifying the authorized exceptions. Furthermore, Section 63(a)(1), AECA provides that leases of major defense equipment (MDE) valued at $14,000,000 or more, or defense articles valued at $50,000,000 or more, except those for NATO, NATO member countries, Japan, Australia, or New Zealand may not be entered into or renewed if the Congress within 30 calendar days aftp.r receiving the certification required by Section 62(a) adopts a joint resolution stating * that it objects to the proposed lease. Valuation for purposes of Section 63(a)(1), AECA ;s in terms of replacement cost as specified in paragraph B.4., above.
C. COORDINATION
1. DSAA Coordination Responsibilities. Each proposed lease of defense articles to a foreign government or international organization requires DoD authorization. The cognizant DoD component yli11 prepare the proposed lease and will forward it together with the proposed determination using the cover memorandum format at Figure 12-1-2 for DSAA countersignature and Department of State coordi nati on. The DSAA Operati ons Di rectorate yli 11 assure appropriate coordination within OSD, including the DSAA Comptroller, the DSAA Plans Directorate, and the DSAA General Counsel, and with the Department of State. After completion of coordination, the DSAA Comptroller will prepare the certification to the Congress for the signature of the DSAA Director if required by the AECA, Section 62(a).
2. Terminations. U.S. Government termination of a lease also requires the coordination process detailed in paragraph C.1., above.
D. CONGRESSIONAL NOTIFICATION
1. Certification Requirements.
a. Leases of One Year or Longer. Under the provlslons of the AECA, Section 62(a), Congress must be notified not less than 30 days before entering into or renewing any agreement with a foreign country or international organization to lease any defense article for a period of one year or longer. Furthermore, Section 63(a)(1) py'cvides that leases of major defense equipment (MDE) valued at $14 million or more, or defense articles valued at $50 million or more, except those for NATO, NATO member countries, Japan, Australia, or New Zealand may not be entered into or renewed if the Congress within 30 calendar days after receiving the certification required by Section 62(a) adopts a joint resolution stating it objects to the proposed lease. * Valuation for purpose of Section 63(a)(1) is in terms of replacement cost as specified in Paragraph B.4. above.
b. Rene\l/als. If a lease for less than one year is renewed one or more times so that the total 'period of the original lease and the renewal or renewals equals or exceeds one year, the renewal which would cause the one
12-4 Change No.7, 15 September 1986
DoD 5105.38-M
year period to be reached or exceeded must be reported to the Congress 30 days before being entered into or renewed. Renewals of a lease subsequent to a Congressional notification do not require new notifications, unless such renf:wals singly or cumulatively result in an extension of one year or more beyond the lease period previously reported (including renewal periods notified as possible options).
2. Certification Procedures.
a. Submission. Section 62(a), AECA requires certification to the Speaker of the House of Representatives, the Chairman of' the Committp.e on Foreign Relations of the Senate, and the Chairman of the Committee on Armed Services of the Senate, Such certification must occur not less than 30 days before the lease agreement is entered into or renewed. To ensure submission of a timely certification, the cognizant DoD component will forward to t.he DSAA Operations Directorate the information in the format at Figure 12-1-4 at least 60 days prior to the projected date for providing the lease, lease renewal, or amendment to the foreign country or international organization for acceptance. When possible a copy of the draft lease will be included as an attachment to the memorandum. The DSAA Operations Directorate will assure the adequacy of the data provided, to include the justification, and the approval of the lease prior to passing on the data to the FMS Control Division of the Office of the DSAA Comptroller for the development of the Congressional notification and its coordination within the OSD, including DSAA Operations (which will obtain Department of State concurrence), DSAA Plans (as required), and the DSAA General Counsel. The DSAA Comptroller will then prepare the Section 62(a), AECA report to Congress using the format in Figure 12-1-5 for signature of the DSAA Director and the cover letters in Figures 12-1-6 through 12-1-8.
b. Approval. The original lease agreement in final form and determination must be provided to DSAA Operations not later than five days before completion of the Congressional notification period, The DoD component, with coordination from the DSAA Operations Directorate, may furnish the prospective lessee an unsigned copy of the lease under a cover letter in the format at Figure 12-1-9 for leases which do not meet the Section 63, AECA criteria, and Figure 12-1-10 for leases which meet the criteria when the lease is reported to the Congress. Thirty days after the Congressional notification, DSAA Operations will authorize the DoD Component to enter into the lease. Immediately on Signature of the lease by the parties. t.he DoD Compo.;. nent will assure that appropriate copies of the lease agreement have been distributed by the country and that any required initial deposit has been received by the SAAC before the lease is executed.
3. Emer enc Waiver of Con ressional Notification Requirement. The AECA, Section , aut or17.es wawer 0 t e ongresslona certlfication requirement descrihed above, if the President determines and immediately reports to Congress that an emergency exists which requires that the lease be entered into immediately in the national security interest.s of the United States. This authority has been reserved to the President for his exercise only. In the event of such an emergency, the DSAA will provide instructions to the cognizant DoD component as appropriate to the particular circumstances.
12-5 Change No.7, 15 September 1986
000 5105.38-M
E. FINANCIAL ARRANGEMENTS.
1. Payment Schedules. The lease designator will be used to track the lease in existing automated systems. Schedule A of each lease will identify the replacement costs of the item(s) being leased and will identify the schedule for rental payment due to the USG. The payment schedule will be establ ished on a quarterly bill ing cycle, compatible with the FMS bill ing cycle. If the quarterly cycle does not provide for payment prior to the effective date of the lease, an initial deposit will be required to assure that payment is received in advance of the month in which rental is incurred. Bil"lings to the foreign lessee will be based on this schedule of payments and \l/i11 be included on a sepat"ate DO Form 645 with the country's quarterly FMS hilling statement. The 000 Component will assure that payment schedules are updated for any extensions, delivery schedule changes, or other amendments which may result in a change to the lease value or schedule of payments. Receipts from lease rental payments under paragraph B.5., above will be deposited in the Miscellaneous Receipts Accounts by the Security Assistance Accounting Center (SAAC).
2. Use of FMS Credits or MAP Merfer Funds. Use of FMS credi ts or MAP funds is not authori zed for payments 0 'ease rental payments specified in paragraph B.S. ~lhen authorized by the DSAA, FMS credit funds or MAP funds may be authorized for FMS cases prepared in support of a lease. (See paragraph E. 3. be low. )
3. Use of DO Form 1513. All costs incurred by the USG incident to the leasing arrangement, including the costs referred to in paragraph B.4., must be reimbursed to the USG using a DO Form 1513. Such costs fll("y cover but are not limited to: packaging, crating, handling, transportation, and refurbishment of the leased articles prior to and/or upon termination of the lease. Schedul e A of the 1 ease wi 11 i dent ify the case des; gnator for the related FMS case, when known. Also, the DD Form 1513 will identify the lease designator in a special note within the LOA. The implementing agency, responsible for the administration of the DO Form 1513 lease associated FMS case, is responsible for reporting costs incurred on the case via the DD Form 1517 performance reporting system.
F. LEASE CLOSURE. Confirmation that a Chapter 6 AECA, or 10 USC 2667 lease, under its cognizance can be closed nlust be provided to SAAC by the responsible DoD component. SAAC will lise the format at Figure 12-1-13 to query the responsible 000 component to determine whether lease closure is possible.
G. REPORTING.
1. ~arterly Re~ort. A report in the format at Figure 12-1-11 will be submitted, not later t an 30 days after the end of each quarter, to the DSAA Operations Directorate Management Division with a copy to SAAC by each DoD * component which has unexpired leases undet" its cognizance. This report will identify leases entered into previously under the authority of title 10, USC 2667 and the AECA, Chapter 6; the report will identify statutory authority for the lease.
2. Financial Report. On a quarterly basis the SAAC will provide to DSAA Operations Directorate the financial status of each lease to include the following data: country, lessee, defense article{s) leased, ident.ified replacement cost of the leased property, funds collected and deposited or to be deposited to miscellaneous receipts, and amounts due.
12-6 Change No.7, 15 September 1986
DoD 5105.38-M
2. The Lessor Government shall deliver the Defense -Articles to the Lessee Government at such time and place as may be mutually agreed upon. Such delivery may be evidenced by a certificate of delivery.
IN WITNESS WHEREOF, Each of the parties has executed this lease as of the day and year first above written.
coUNTRY OR INTERNATIoNAL ORGANIZATION
BY ________________________ __
(Typed Name)
(Tit1e)
(bate)
THE UNITED STATES GOVERNMENT
By __________________________ __
(Typed Name)
(Title)
(Date)
COUNTERSIGNATURE:
BY
(Typed Name)
Director, Defense Security" Assistance Agency
(Title)
(bate)
FIGURE 12-1-3. (Continued)
12-11 Change No.7, 15 September 1986
000 5105.38-M
Page of (Lease Designator)
GENERAL PROVISIONS
1. OPERATIONS AND USE.
a. Except as may be otherwise authorized by the Lessor Government and except for the purposes of transfer from ~nd return to the Lessor Government, the Lessee Government shall keep the Defense Articles in its own possession, custody, and control. The Lessee Government shall not transfer title to or possession of the Defense Articles to anyone not an officer, employee, or agent of the Lessee Government and sha 11 not permi t any encumbrance or other * th!rd party interest in, the defense articles.
b. The Lessee Government shall, except as may be otherwi se mutually agreed in writing, use the items leased hereunder only:
(1) For the purposes specified in the Mutual Defense Assistance Agreement, if any, between the Lessor Government and the Lessee Government;
(2) For the purposes specified in any bilateral or regional defense treaty to which the Lessor Government and Lessee Government are both parties, if subparagraph (1) of this paragraph is inapplicable.
(3). For internal security, individual self-defense, and/or civic action, if subparagraphs (1) and (2) of this paragraph are inapplicable.
c. To the extent that any Defense Articles may be classified by the Lessor Government for security purposes, the Lessee Government shall maintain a similar classification and employ all measures necessary to preserve such security, equivalent to those employed by the Lessor Government, throughout the period during which the Lessor Government may maintain such classificati on. The Lessor Government wi 11 use its best efforts to notify the Lessee Government if the classification is changed.
2. Initial Condition. The Defense Articles are leased to the Lessee Government on an lias is, where is" basis without warranty or representation concerning the condition or state of repair of the Defense Articles or any part thereof or concerni ng other matters and wi thout any agreement by the Lessor' Government to alter, improve,' adapt, or repair the Defense Articles or any part thereof.
FIGURE 12-1-3. (Contlnued)
12-12 Change No.7, 15 September 1986
Dear
FIGURE 12-1-10
LETTER ADVISING LESSEE OF CONGRESSIONAL NOTIFICATION OF LEASE FOR MOE FOR OVER ONE YEAR
-------
000 5105.38-t'1
Enclosed for consideration and analysis by your (Government/Organlzation) is an unsigned advance copy of a leasing arrangement; Lease Designator ( ).
Section 62 of the Arms Export Control Act requires certification be given to the Congress of the United States at least 30 days prior to entering into a lease of one year or longer. Section 63 further provides that a lease of one year or longer of major defense equipment valued at $14,000,000 or more or defense articles valued at $50,000,000 or more may not be entered into if the Congress within 30 calendar days after receiving the certification adopts a joint resolution stating that it objects to the proposed lease.
The Department of Defense has transmitted the required notification to the Congress on (date), Assuming that the Congress does not object to the proposed lease, the enclosed lease will be signed and issued to your (Government/Organization) by the authorized Department of Defense representative on or about (date). In' the event that the Congress should object to this proposed lease, you will be notified promptly of that fact.
Should your (Government/Organization) wish to accept this lease, it should await receipt of the signed lease.
Enclosure a/s
Sincerely,
FIGURE 12-1-10. Letter Advising Lessee of Congressional Notification of Lease for MOE for Over One Year.
12-23 Change No.7, 15 September 1986
*
000 5105.38-M
,FIGURE 12-1-11
RCS: DSAA(Q)1146
Prepare a report in the format below (classified if necessary) for each lease ** of any value, providing for the lease of property to a foreign government or international organization. Leases will be reported untii the property 'is returned to U.S. custody, or lease is completed by other action.'
FORMAT * The following data will be included for all leases: *
Date of lease and statutory authority (AECA Sec. 61, 10 USC 2667. * Other): '
Duration/special terms:
Expiration date,:
Replacement value of lease material (wher leased):
Total rental or summary of other considerations:
Rental paid to date:
Date lease reported to the Congress (if.required under the AECA, Section 62):
Action taken on expired lease or lease due to expire during next ** quarter:
Lease being renewed: 'i~*
Date material returned: ** Material sold (FMS Case Designator): ** Other action status than that above: **
FIGURE 12-1-11. RCS: DsAA(Q)1146.
12-24 Change No.7, 15 September 1986
DoD 5105.38-M
* (deletion)
[This page left blank intentionally.]
12-25 Change No.7, 15 September 1986
from
FIGURE 12-1-12
CERTIFICATE OF DELIVERY
000 5105.38-M
Pursuant to the provlslons of the Lease Agreement executed (this date) between our respective governments, the undersigned as the authorized representative of the
Government of (insert)
accepts the below described (insert) together with its on board equipment
( insert)
authorized representative of the United States (enter DoD Component)
Item Nomenclature Quantity
Date
Us Representative Government of (insert) Representati ve
FIGURE 12-1-12. Certificate of Delivery.
NOTE: Recommended distribution: Original to: MILDEP JAG Copies to: DSA.l\
MILDEP SA Activity SAO
12-26 Change No.7, 15 September 1986
000 5105.38-M
Section 705, Foreign Military Sales Financial Management Manual (000 7290.3-M) and the guidance in this manual were developed on that basis. As a general rule, FMS administrative funding is made available to those organizations actually implementing the FMS program, i.e., the Military Departments and selected 000 organizations. Funding is not provided to those organizations responsible for formulating U.S. Security Assistance policy, e.g., Department of State, JCS, Under Secretary of Defense for Policy, Assistant Secretary of Defense, International Security Affairs, etc.
(2) Financial Mana~ement. Financial management of the FMS administrative surcharge funds is t e responsibility of the Comptroller, DSAA. The Security Assistance Accounting Center (SAAC) provides centralized accounting support aSSisting in FMS program implementation through the collection of surcharge revenues and the allocation of FMS administrative funds in accordance with the DSAA approved annual funding programs.
b. FMS Administrative Budget Preparation and Approval Process.
(1) Program Objective Memorandum (POM) Guidance. In January of each year the Comptroller, DsAA provides a five year projection of n~s sales activity and administrative fund budget planning levels to each of the military departments and 000 agencies administering the FMS program. Issuance of these multi-year estimates is in cycle with the issuance of Defense Programming Guidance. The planning levels are developed to assist the Military Departments and 000 agencies in determining FMS administrative requirements for use in formulating their Program Objective Memorandum •.
(2) BUd~et Call/Budget Submissions. In conjunction with the POM guidance, the DsA issues an FMS administrative budget call to those t1ilitary Departments and 000 agencies responsible for the administrCl.tion of the FMS program. In accordance with the normal 000 budget process the submi ss ion of budget estimates containi ng multi -year data and justificat; on information is required. For example, the budget call issued in January 1983 requested the following data for each organization receiving FMS administrative funds:
FY 1982 - Actual obligations FY 1983 - Estimated actual obligations FY 1984 - Revised funding estimates with justification FY 1985 - Initial funding estimates with justification
(3) Preparation of Bud~et. Upon receipt of the budget call the ~1i1itary Departments and 000 agencles will prepare and submit their budget requests to the Comptroller, DSAA in the formats and in accordance with the instructions contained in the call. The DSAA reviews each submission and establishes approved FMS administrative funding levels for inclusion in the President's budget as well as an Annual Funding Program (AFP) for the upcoming fiscal year. The following subjects are highlighted as worthy of special attention in the development and execution of FMS administrative budgets.
(a) Facilities Projects. Projects involving construction of new facilities or expansion of existing facilities, that would normally require Congressional approval in the military construction budget process,
13-3 Change No.7, 15 September 1986
000 5105.38-M
will not be included in FMS administrative budgets. FMS administrative funds may be used for routine facility maintenance and repair costs in those instances whcl"e the costs can be justified as base operating support costs in accordance with the criteria outlined in the annual call. Facility rehabilitation projects at dedicated security assistance activities may also be financed with FMS administrative funds. Such projects must meet 000 criteria for approval as O&M Minor Construction (project cost not to exceed $200,000) and must be specifically identified and justified in the budget request. (Note: Prior approval of the DSAA is required before funds may be obligated for such projects.)
(b) Automated Data processin~ (ADP) Projects. In general, FMS administrative funds may be used tofnance system development, investment, and operating/maintenance costs for existing or new FMS management information systems at dedicated FMS activities. At non-dedicated activities, ADP costs chargeable to FMS administrative funds will be based upon an hourly rate for machine time (computers and auxi 1 i ary equi pment) based on records which indicate machine time required to produce FMS reports or transactions. Programming support is chargeable providing such costs are for FMS purposes; ; .e., the effort meets the criteria for personnel compensation indicated in the budget call. Requests for new ADP systems (or changes to existing systems) which require development/investment costs of $100,000 or more and/or an increase to estimated annual operating/maintenance costs of $200,000 or more must be reported to the DSAA for approval prior to inclusion in FMS administrative budget requests. Such projects must also be discretely identified with supporting justification in the budget submission materiel.
(c) Special Projects. Special projects, such as major program efforts, special equipment purchases, contract studies, or contracted support, must be separately identified and justified whenever the estimated cost of the individual project exceeds $50,000. Examples of projects of this type are the Air Force's SAMIS and FX programs and the Army's SA-3 and ACOCS programs. Specific identification and justification of the project will be accomplished through the preparation of a complete budget package comparable to that prepared for a separate activity.
(d) Base Operating Support Costs. Base operating support ** (BOS) costs encompass numerous management, adm1n1strat1ve, and support functions associated with the operation of a mil itary installation or activity. BOS costs may be included in FMS administrative budgets only if they are incurred primarily for the benefit of the FMS program. Section 109 of Public Law 99-83, the International Security and Development Cooperation Act of 1985, excludes from charging to FMS administrative fupds "a pro rata share of fixed base operation costs." Those BOS costs that may be charged to FMS administrative funding are identified in the annual budget call.
(e) Dedicated securit~ Assistance Activities. This ** refers to a MILDEP command or actlVity w ose mission 1S 100% dedicated to management and implementation of the U.S. Government's Foreigr: r·lilitary Sales and·Military Assistance Programs. For budgeting purposes only the following organizations are considered to be dedicated security assistance activities: U.S. Army Security Affairs Command (USASAC), the U.S Navy International Logistics Control Office (NAVILCO), the U.S. Air Force Logistics Command -International Logistics Center (AFLC-ILC), the Security Assistance Accounting
13-4 Change No.7, 15 September 1986
000 5105.38-r~
Center (SAAC), and the Defense Institute of Security Assistance Management (DISAM). The designation of selected activities as "dedicated" permits charging some prorated BOS costs to FMS administrative funds. In those instances where a MILDEP operates a relatively large full-time security assistance organization, it is reasonable to assume that some BOS costs are incurred primarily for a foreign country (reference the AECA, Section 43(b)). Since proration techniques are the most practical method for distributing BOS costs, this technique is permitted for some BOS costs at "dedicated" activities. However, as indiGated in paragraph (d), P.L. 99-83 excludes from charging to FMS administrative funds a pro rata share of fixed base operation costs. The Congress defined fixed base operation costs to include, among others, costs for the following: Alcohol and drug abuse program, fire protection, pest control, laundry and dry cleaning, food service, base chaplain, morale, welfare and recreation, and restoration of historical landmarks. In those instances where the full-time security assistance effort is either concentrated in relatively small subordinate organizations or is scattered through the entire activity, the use of proration techniques to allocate BOS costs does not demonstrate that these costs have been incurred primarily for a foreign country. The annual budget call provides additional guidance on BOS costs.
(f) Billing FMS Administrative Funds for Reimbursements Earned. Past audit reports have noted that a significant amount of the "earned reimbursements" billed to FMS administrative funds did not comply with the requirement of the Accounting Guidance Handbook 000 7220.9-H, that reimbursements earned be supported by documents showing that the expenses were actually incurred. In many instances, organizations had billed and collected funds without any supporting documentation indicating that the costs had been incurred. Organizations with FMS administrative budgets must assure that reimbursements earned and billed to the administrative funds are based on documented expenses accruing from actual FMS related administrative work.·
(g) FMS Acceleration of Civilian and Military Personnel Costs. The development of estimated civilian and military personnel costs for the FMS Administrative Budget requires the application of FMS payroll acceleration rates to the average annual civilian pay cost and to the military annual standard composite rate to provide for full recovery of the U.S. Government's costs as shown below. Regarding the above listed pay acceleration factors, 20.9% of the 27.9% civilian retirement acceleration should be * budgeted for return to the U.S. Treasury Miscellaneous Receipts Account. The * agency contribution of 7% for civilian retirement and all other acceleration * such as insurance, other benefits and Medicare are budgeted for reimbursement * to the appropriate MILDEP financing appropriations.
(h) Exem~ted Programs. FMS cases with some countries and international organizations ave been exempted from the application of FMS
13-5 Change No.7, 15 September 1986
*
* * * * * *
000 5105.38-f·1
administrative charges. The administrative costs related to these cases are properly funded from service appropriations pursuant to the AECA, Section 43(a) and should not be charged to FMS administrative funds. The exempted programs are identified in the annual budget call.
, (4) Issuance and Use of Funds. At the direction of the Comptroller, DSAA, the sAAc issues quarterly funding allotments to each of the organizations for which an AFP has been established. The MILDEPs are ~enerally permitted to reprogram their FMS administrative funds between object classes to handle requirements which have changed from thqse originally approved by DSAA. Recipients of FMS administrative funds are required to provide regular accounting reports on the use of the funds and to return end of year unobligated balances to SAAC within a reasonable amount of time after year end certification.
2. MAP Administrative and Overhead Support and SAO Budget Systems/ Procedures.
a. General. Military Assistance Program (MAP) administrative and overhead and SAO support cost budgets include salaries and allowances, travel, rents, utilities, communications, printing, contractual services, equipment (including passenger and non-passenger vehicles), permanent change of station travel of civil ian personnel, transportation of things, and temporary a.dditional duty for the purpose of planning, development and management of MAP and IMET activities,. by the.MILDEPs and MAP, IMETand FMS activities by the SAOs, etc. These procedures apply to all costs in the following MAP budget projects:
L-I0 Transportation Costs L-20 Packing, Crating, Handling, Port Loading and Unloading Costs L-40 Storage and Maintenance of MAP Stockpiles L-60 Logistics Management Expenses T-IQ Administrative Expenses, Departmental and Headquarters T-20 Administrative Expenses for MAAGs, Joint U.S. Military Advisory
Groups (JUSMAGs), Military Missions~ U.S. Military Groups (MilGroups), Offices of Defense Cooperation (ODC), Offices Military Cooperatipn (OMC), Offices of Defense Representative (ODR), other similar organizations, and Defense Attache Offices (DAOs) which are designated to perform security assistance management functions.
b. Responsibilities.
(1) Administrative Agency. The MILDEPs have been assigned Administrative Agency responsibilities for Unified Command. headquarters by 000 Directive 5100.2, "Support of the Headquarters of Unified, Specified, and Subordinate Joint Commands. II The MILDEPs have also been assigned Administrative Agency r~sponsibil ity for SAO administration and operating support in accordance with DoD Directive' 5123.3, "000 Policy and Responsibilities Relating to International Security Assistance (ISA)," as follows:
(a) Debartment of the Army. The countries in the CINCEUR and ClNCSO area of responsi ility. . .
(b) beeartment of the Air Force. The countries in the CENTCOM area of responsibil,ty. . .
(c) Department of the Navy. The countries in the CINCPAC and. CINCLANT area of responsibility.
13-6 Change No.7, 15 September 1986
DoD 5105.38-1/1
(2) Logistic su~port. Logistical support responsibilities of theMILDEPs will be accomplishe within the guidance of DoD Directive 4000.19, IIBasic Policies and Principles for Inter-service, Interdepartmental and Interagency Support.1I
(3) Authorization Document Review. The SAOs will review the Joint Table of A'ilowance and other authorization documents annually. Revisions required to accommodate changes in operations will be submitted in accordance with AR 1-75/0PNAVINST 4900.31E/AFR 400-45.
(4) MAP Bud~ets/Financial Plans. The Military Assistance Program (MAP) budgetS7financl a 1 pl ans for the sAOs, Unified Commands, Departmental Headquarters, and subordinate commands will be prepared in accordance with instructions contained in this Chapter, the annual budget call and other DSAA, Administrative Agency, or Command guidelines. .
thei r own necessary, s i bi 1 ity. Agency.
(a) Unified Command Role. Wnified Commands will prepare budget and also review, determine the adequacy of, revise, if and consolidate the budgets from the SAOs in· their area of respon';' They will forward these budg~ts to DSAA through the Administrative
(b) Administrative Agency Role. The Administrative Agencies \,/ill review and revise, if necessary, the Unified Command and SAO budgets as well as review, revise, and consolidate the Departmental and Headquarters budgets under their jurisdiction prior to fqrwarding them to the DSAA.
c. Military Assistance Program/SAO Budget Cycle.
(1 ) MAP/SAO BUd~et Calls. DSAA issues two budget calls each year requiring submission ofudget estimates and supporting justification materiels for the MAP overhead and support activities .and SAO budgets. These are the President's Budget Calland the Mid-year Review Budget Call.
(a) President~s Budget Call. This budget call is issued in mid-April calling for submission of E;udget estimates and supporting information on or about 1 July. Submissions in response to this call include the estimated actual costs for the prior year, revised estimated requirements for the current year (the fiscal year which will commence 1 October) and estimates for the budget year for inclusion in the President's Budget. For example, the submissions for the FY 1985 President's budget would include estimated actual costs for FY 1983, revised estimates for FY 1984 as well as the initial FY 1985 estimates. DSAA conducts· its review of this submission during July and August to establish approved MAP and SAO budget esti~ates for inclusion in the initial submission of the President's budget estimates to the Office of Management and Budget in September.
(b) Mid-Year Review Budget Call. This budget call is issued in mid-January calling for submission of estimates and supporting materiels o'n or about 20 April. The submission includes prior year actual costs and revised current year operating cost estimates. The purpose of the submission is to provide a basis for revising the current approved operating
13-7 Change No.7, 15 September 1986
000 5105.38-M
budget to account for necessary fact of 1 ife changes. The m; dyear budget submission should nqt include new projects or programs unless they are of an urgent nature and fully"justified. DSAA conducts its review of the mid-year budgets during April and May and issues revised annual funding programs and matching funding allocations during June.
d. Development and Submission of Budget Estimates.
(1) Budget estimates submitted fo~ the President's Budget Review will b~ completed in accordance with instructions in that call. "
(2) . Budget estimates submitted for the mid-year review will be modified in accordance with instructions in that call. "
t ~ •
(3) Unified Commands and all other ~1AP funded activities will submit to the appropriate MILDEP MAP administration and support requirements for each SAO. Command Headquarters, and other MAP funded activity on Formats provided in the call. Submissions of subordinate activities should be reviewed by the Unified Commands and adjusted as necessary. Adjustments, if any, will be reflected on all applicable formats. The Unified Command will a 1 ~o P\epar~ consolidated formats for all act.ivities under its juri sdiction.
(4) The Mi"litary Departments (Administrative Agencies) will:
(a) Review or develop and' consolidate departmental and command MAP administrative and support requirements.
(b) Review and adjust. as necessary, the requirements submitted by Unified Commands and other subordinate activities. Adjustments, if any, will be refl ected on a 11 app 1 icab 1 e formats.
(c) Ensure t.hat all budgets are appropriately summarized identifying all organizations under the command. Budgets will be assembled in the sequence shown in the ca 11. Submit a 11 budgets to the Comptroller, DSAA.
e. Reports.
" (1) Quarterl~ Mi 1 itary Manpower Report for SAOs, MISSIONS, MilGroups, RCS: DSAA (Q)·121 •
(a) S~ction 515(d) of the Foreign Assistance Act of 1961 * requires that the MILDEPs be reimbursed for pay and allowances and PCS costs of military members assigned to SAOs. Accordingly, a quarterly SAO military manpower report, RCS: DSAA (Q) 1218 to be based on the actual lion board" strength as of the end of each month has been established to collect the data required to, calculate the reimbursements due to the MILDEPs and effect appropriate payments. Timely and accurate reporting of required data is essential to effective compliance with the law.
(b) Consolidated reports for all SAOs under their purview will be submitted by each Unified Command in the format shown in Table 13-1-1 by the 10th calendar day following the end of each quarter.
13-8 Change No.7, 15 September 1986
AAO ACDA AECA AFAO AIASA AID AMEMB APOD ARC ASD ASD(C) ASD(ISA) ASD(ISP) ASD(A&L) ATMG AU AUTODIN
BA B/L BO BOA
CAD/PAD CAS CBL CCBL CBO CDR CET CETS CETSP CFS CFE CGSEL CIA CIP
APPENDIX A ABBREVIATIONS AND ACRONYMS
A
,Authorized Acquisition Objective Arms Control and Disarmament Agency Arms Export Control Act, as amended Approved Force Acquisition Objective
DoD 5105.38-M
Annual Integrated Assessment of Security Assistance Agency for International Development American Embassy Aerial Port of Debarkation (Delivery) Adjustment Reply Code Assistant Secretary of Defense Assistant Secretary of Defense (Comptroller) Assistant Secretary of Defense (International Security Affairs) Assistant Secretary of Defense (International Security Policy) Assistant Secretary of Defense (Acquisition and Logistics) * Arms Transfer Management Group Asset Use Automated Digital Network
Budget Authorization Bill of Lading Blanket Order Basic Order Agreement
B
C
Cartridge Actuated/Propellant Actuated Devices Contract Administrp,tive Services Commercial Bill of Lading Collect Commercial Bill of Lading Congressional Budget Office Consolidated Data Report Civilian Engineering Team Contractor Engineering Technical Services Contractor Engineering Technical Services Program Contract Field Services Contractor Furnished Equipment Common Ground Support Equipment List Central Intelligence Agency Component Improvement Program (Engine)
DAO DAS DATT DCAA DCAS DCASR DCM DCSC DEA DESC DFSC DGSC OIC DIFS OIL DISAM DISC DLA DLIELC DLSC DLSSO DMA DMAAC DMAHTC' DOD DODIP DODISS DODSSP DOS DPSC DRMS DSAA DSC DTC DTS
DoD 5105.38-M
Country Liaison Officer (Foreign Country Representative) Cooperative Logistics Supply Support Arrangements Contractor Maintenance Services Continental United States . Cooperative Logistics Congressional Presentation Document Country Program Listing Country Program Manager Continuing Resolution Authority Congressional Research Service Concurrent (initial) Spare Parts
D
Defense Attache Office Defense Audit Service Defense Attache D~fense Contract Audit Agency Defense Contract Administration Service Defense Contract Administration Services Region Deputy Chief of Mission (U.S. Embassy) Defense Construction Supply Center (DLA) Data Exchange Agreement . Defense Electronics Supply Center (DLA) Defense Fuel Supply Center (DLA)
. Defense Gener~lSupply Center (DLA) Document Identifier Code Defense Integrated Financial System Director of International Logistics Defense Institute of Security Assistance Management Defense Industrial Supply Center (DtA) Defense Logistics Agency Defense Language Institute, English Language Center Defense Logistics Services Center Defense Logistics Standards Systems Office Defense Mapping Agency Defense Mapping Agency Aerospace Center Defense Mapp"ing Agency Hydro'graphic/Topographic Center Department of Defense Department of Defense Informational Program Department of Defense Index of Specifications and Standards Department of Defense Single Supply Point Department of State Defense Personnel Suppo~t Center (DLA) Defense Reutilization and Marketing Service Defense Security Assistance Agency Defense Supply Center/Delivery Source Code Delivery Term Code Defense Transportation System
NACISA NAMSA NAMSO NAPR NATO NDP-l NDPC NIIN NOA NSA NSC NSN
M
Military Airlift Command Military Assistance Group Military Assistance and Advisory Group Military Assistance Program Military Assistance Program Address Code Military Assistance Program Address Directory MAP Excesses MAP Owned Materiel
000 5105. 38-r~
Military Articles and Services List(s) for Materiel; and Training and Training; IMET, FMS and NATO
Munitions Control List ~Iilitary Critical Technology List Mutual Defense Assistance Agreements Major Defense Equipment Major Force Program Multi-National Force and Observers Military Departments Military Standard Billing System Military Standard Contract Administration Procedures ~lilitary Standard Transportation and Movement Procedures Military Supply and Transportation Evaluation Procedures Military Standard Transaction Reporting and Accounting
Procedures Military Standard Requisitioning and Issue Procedures Major Item Material Excess Military Interdepartmental Purchase Request Material Inspection and Receiving Report (DO Form 250) Memorandum of Agreement Mode of Shipment Memorandum of Understanding ~lil itary Postal Service Military Traffic Management Command Mobile Training Team
N
NATO Communications and Information Systems Agency NATO Maintenance and Supply Agency NATO Maintenance and Supply Organization NATO Armaments Planning Review North Atlantic Treaty Organization National Disclosure Policy National Disclosure Policy Committee National Item Identification Number Notice of Availability National Security Agency National Security Council National Stock Number (replaces FSN)
A-5 Change No.7, 15 September 1986
*
I
OA OASD/ISA
OADS(ISP)
O,L\SD (MRA&L )
ODC OJCS OJT O&M OMB OMC OSD on OVHL
PA PACA~1S P&A P&R PCH&T PD PD~ PKO PLT PM PME PIN POC POL POM PPBS
I QA QAT QTY QRR
000 5105.38-M
o
Obligation Authority Office of Assistant Secretary of Defense/International Security
Affairs Office of'the Assistant Secretary of Defense (International
Security Policy) Office of the Assistant Secretary of Defense (Manpower, Reserve
Affairs and LOQistics) Office 'of Defense-Cooperation Office Joint Chiefs of Staff On-the-Job Training Operations and Maintenance Office of Management and Budget Office of Military Cooperation Office, Secretary of Defense Orientation Training Tour Overhaul
P
Program Authorization Panama Canal Military Schools Price and Availability Planning and Review Data Packaging, Crating, Handling and Transportation Presidential Determination Property Disposal Officer Peacekeeping Operations Procurement Lead Time Bureau of Politico-Military Affairs (Department of State) Professional ~1ilitary Education Part Number Point of Contact Petroleum, Oil and Lubricants Program Objective Memorandum Planning, Programming and Budgeting System
Quality Assurance Quality Assurance Team Quantity
Q
Quarterly Requisition Report
A-6 Change No.7, 15 September 1986
DoD 5105.38-M
'---_________ R ________ ---'I· RAD R&D RCN RCO RDD ROO RDT&E RIC ROD RSI RSN
SA SAAC SAMAS SAO SAPRt~G SATP SDAF SECDEF SME SOFA SPC SSA STANAG SVI
TAC TAFT TAT TBC TCN TDP TLA TO TOA TOR
Required Availability Date Research & Development Record Control Number Requisition Control Office (ILCO) Required Delivery Date Redistribution Order Research, Development, Te~t and Evaluation Routing Identifier Code Report of Discrepancy Rationalization, Standardization, Interoperability Record Serial Number
S
Security Assistance Security Assistance Accounting Center Security Ass i stance ~1anpower Accounti ng System Security Ass; stance Organi zati on-Security Assistance Program Review Working Group Security Assistance Training Program Spe~ial Defense Acquisition Fund Secretary of Defense Significant Military Equipment Status of Forces Agreement Strategy and Planning Committee Security Supporting Assistanc~ Standardization Agreement (NATO) Single Vendor Integrity
T
Type of Address Code . Technical Assistance Field Team Technical Assistance Team Transportation Bill Code Transportation Control Number Technical Data Package Travel and Living Allowance Technical Order Total Obligational Authority Terms of Reference
Uniform Materiel Movement and Issue Priority System Urgency of Need Designator United States Central Command United States European Command United States Atlantic Command United States Pacific Command Unit.ed States Southern Command Under Secretary of Defense for Policy/United States Disclosure
Policy Under Secretary of Defense for Research and Engineering United States Information Agency
V
[None at this time • .]
W
W6rksheet Control Number Water Port of Discharge Worksheet Control Number
X
[None at this time.]
y
[None at this time.]
z
[None at this time.]
-l
A-8 Change No.7, 15 September 1986
DoD 5105.38-M
or percentage of completion, or of a particular stage of cqrnpletion, accomplished prior to actual delivery and acceptance of contract items.
Public Law 480 (PL 480) Funds (Sec. 104c) - Foreign currencies derived from sale of surplus agricultural commodities under Title I, P.L. 480, Agricultural Trade and Development Act of 1954, as amended. Section l04(c) authorized these foreign currencies to be used for procuring equipment, materials, facilities, and services for the common defense including internal security.
Purchase Approval - Approval issues by DSAA for 000 which permits the country to utilize the credits extended under the Credit Agreement to finance the purchase of agreed to defense articles and defense services.
R
Reapproeriation - MAP or IMETP funds which at the end of the fiscal year are not obl,gated and are made available by the Congress for use in the subsequent fiscal year.
Record Seri a 1 Number - A code whi ch i dent ifi f'S a deta ill i ne item on the DO Form 1513. This code is perpetuated in the DO Form 645.
Recoupments (MAP) - Adjustments or cancellations of outstanding MAP orders in prior year accounts which generate additional funds to pay valid obligations, e.g., price increases existing in those prior year accounts.
I
Redistributable MAP Property - All MAP personal propeY'ty which has been de:clared, by the recipient government to the United States, as no longer needed for the purposes for which furnished and which meets the criteria for utilization screening.
Reimbursements (MAP) - Funds realized from the sale of returned MAP owned property, such funds bei ng depos ited to MAP accounts and avail ab 1 e for programming.
S
secondar~ Item Line - A dollar value line encompassing items of equipment te.g., Ii ther Support Equipment"), as distinct from a dollar value 1 ine encompassing commodities or components, parts and accessories.
securitl Assistance - Group of programs authorized by the Foreign Assistance Act of 961, as amended, and the Arms Export Control Act, as amended, or other related statutes by which the United States provides defense articles, military training, and othet" defense related services, by grant, credit or cash sales, in furtherance of national policies and objectives. [JCS Pub IJ
Security Assistance Organization (SAO) - Ttiis term emcompasses all 000 elements located in a foreign country with assigned responsibilities for carrying out security assistance management functions. For instance it includes
B-15 Change No.7, 15 September 1986
\
000 S105.38-~1
military -assistance advisory groups (MAAGs), military missions and groups, offices of defense/military cooperation, liaison groups, and defense attache 'personnel designated to perform security assistance functions.
Services, Defense - Services include any service test, inspection, repair, training, publication, technical or other assistance, or defense information used for the purposes of furnishing military assistance under the Foreign Assistance Act of 1961, as amended, or for making military sales under the U.S. Arms Export Control Act, as amended.
Significant Military Equipment (SME) - Defense articles and services on the U.S. Munitions List in the Inte)"national Traffic in Arms Regulati'on (ITAR) which are preceded by an asterisk. SME are articles which required special export controls "because of their capacity for substantial utility in the
, conduct of military operations." [Federal Register~ Vol. 45, No. 246J
SU~P1Y O~eration Costs - Refers to the categorization of those costs which are re ated to the procurement and issue of material and excess articles delivered to MAP and FMS recipients but not included in the standard prices of the material. The,secosts include packing, crating, handling and transportation expense in~urred in the issue and transfer of material; and logistics management exp~nses (exclusive of military pay and allowances in the instance of MAP transactions) incurred by activities in the areas of procurement operations, supply management, requisition control, and processing, and related services.
Supply Support Arrangement Sa 1 es Case - Peacetime mi 1 itary 1 ogi sti cs support systems, designed to, provide responsive and continuous support for U.S.-made
• military material possessed by foreign countries •
. ~I ________ -----------T------------------~ Total ObliBation Authority (TOA) - The total financial requirements of the Fiv~ Yearefense Program, or any component thereof, required to support the approved program of a given fiscal year.
Training - F.ormal or informal instruction of foreign students in the United States or overseas by officers or employees of the United States, contract technicians, contractors (including instruction at civilian institutions), or by correspondence courses, technical, educational or information publications and media of all kinds, training aid, orientation, training exercise, and military advice to foreign military units and forces. [Sec. 47(5), AECAJ
Trust Fund (FMS) - A fund credited with Y'eceipts which are earmarked by law and held in trust, or in a fiduciary capacity by the government for use in carrying out specific purposes and programs in accordance with an agreement.
B-16 Change No.7, 15 September 1986
000 5105.38-M
U 1 Unaccepted Case - An FMS 1 etter of offer whi ch was not accepted or funded within prescribed time shown.
v
Value
a. Under Sec 644(m), FAA:
(1) With respect to an excess defense article, the actual value of the article plus the gross cost incurred by the United States Government in repairing, rehabilitating, or modifying the article, except that for purposes of Section 632(d) such actual value shall not be taken into account:
(a) For major items the pricing guidance contained in' 000 7290.3-M may be used to determine the value of EDA.
(b) For secondary items the inventory standard stock price is to be used.
(2) With respect to a non-excess defense article delivered from inventory to foreign countries or international organizations under this Act, the acquisition cost to the United States Government, adjusted as appropriate for condition and market value.
(3) With respect to a non-excess defense article delivered from new procurement to foreign countries or international organizations under this Act, the contract or production costs of such article.
(4) With respect to a defense service, the cost to the United States Government of such service.
(5) With respect to IMET, the additional costs that are incurred by the USG in furnishing such assistance.
b. Under Sec 47(2), AECA:
"Va 1 ue" means, in the case of an excess defense arti cl e, except 'as other'wise provided in Section 21(a), FAA, not less than the greater of: (1) the gross cost incurred by the USG in repairing, rehabilitating, or modifying such articles, plus the scrap value; or (2) the market value,' if ascertainable.
Military Schools (PACAMS) SINAI Peacekeeping , Force (Sinai Peace Force) South East Asia Treaty
Organization (SEATO) Supreme Allied Commander
Atlantic (SACLANT) Supreme Headquarters,
Allied Powers, Europe (SHAPE)
United Nations (UN)
NOTE: AT Atlantic Command Central Command European Command Pacific Command Southern Command Africa Region
Code
N9
K3
N8
* N3 KI
R3
Al
11
S2
T4
K5
A2
T9
American Republic Region East Asia and Pacific Region European Region
Unified command Cognizance
NR
NR
NR
NR NR
EU
NR
SO
NR
NR
NR
EU
NR
CE EU PA, SO AFR AR EAP EUR NESA NR
Near East and South Asia Region Non-Regional
000 5105.38-M
Area/Congre's-sional Grouping
NR
NR
NR
NR NR
NESA
NR
AR
NR
NR
NR
EUR
NR
* Not authorized for purchaser identification in Foreign Military Sales Cases.
,TABLE 0-5.' (continued) [Page 7 of}J
,; "
,0-34 Change No.7, 15 September 1986
DoD 5105.38-M
Code Meaning
DSupply Complete. Notification from the Implementing Agency that supplies/services delineated in a specific .case have been furnished "supply complete" to the foreign government.
Z Cancelled Letter of Request (LOR). A Letter bf Request which has been cancelled prior to preparation of the LOA ,usually at the request of the foreign government.
R Letter of Request (LOR). The Letter of Request phase indicating that the Implementing Agency has received an LOR for an LOA from the foreign government.
TABLE D-10. (Continued). [Page 2 of 2J
D~79 Change No.7, 15 September 1986
DoD 5105.38-M
TABLE D-11 TYPE OF ASSISTANCE CODE - 1000 SYSTEM
Code Meaning
1 Grant Aid rendered under the authority of the Foreign Assistance Act of 1961, as amended, for which the United States receives no reimbursement.
C Presidential Determination to order defense articles from stock and pedormance of defense servi ces to sati sfy Grant Aid requi rements \'Jith reimbursement from subsequent military assistance appropriations. (Section 506 FAA of 1961, as amended.)
D Mil i tary Assi stance Service Funded • Grant Aid programs transferred to the Department of Defense budget, which were not controlled and implemented through the MAP documentation and ADP system.
H Grant Aid share of cost sharing agreements. K Grant Aid of MAP-owned assets obtained through barter arrangements
with the Federal Republic of Germany (used in conjunction with Source of Supply Code IIBII only).
L Grant Aid provided through the NATO Hawk Production and Logistics Organization (NHPLO) for maintenance support of the Hawk Missile System (used in conjunction with Source of Supply Code liN" only.)
N Grant Aid of articles or services available as a result of liquidation of MAP's investment in the spare parts stock of the NATO Maintenance Supply Organization (NAMSO).
P Grant Ai d Programs transferred to the Department of Defense budget which were controlled and implemented through the MAP documentation and ADP system.
R Grant Aid of U.S. recovered materiel resulting from liquidation of NATO Maintenance Supply Agency excess stockage.
S Assigned to all records in the Republic of Korea Equipment Transfer program authori zed by Pub 1 i cLaw 95-384 at no charge to MAP. Thi s code is also assigned to all PY 71 update & 72 equipment transferred to th~ ROK under Public Law 91-652 at no cost to MAP. This code is ?lso assigned to ammunition transferred to the Royal Thai Government from Army FMS Case UEB. Transfer at no cost to MAP was authorized by Section 24, Public Law 96-92, 29 October 1979.
fABLE D-ll. TYPE OF ASSISTANCE CObE - 1000 SYSTEM.
D-80 Change No.7, 15 September 1986
* (del etion)
000 5105.38-M
APPENDIX E
CONGRESSIONAL REPORTS INVENTORY AND DSAA REPORTS CONTROL SYSTEM *
A. PURPOSE. This appendix provides an up-to-date inventory of statutory ** reports to Congress covering security assistance matters submitted by the Department of Defense elements. It does not include reports submitted to Congress by the Department of State. An inventory of current DSAA reporting requirements under the Reports Control System is also contained in this appendix. The inclusion of a report in either of these listings does not in any way imply its availability to a SAMM recipient nor its releasability to a nongovernmental requestor. Some reporting requirements are identified elsewhere in the Manual within the applicable topical areas. This appendix also provides reporting instructions on selected reports, not covered elsewhere in this Manual, requiring feeder information from 000 components~
B. CONGRESSIONAL REPORTS INVENTORY. See Table E-1. * C. DSAA REPORTS CONTROL SYSTEM. See Table E-2. **
1. The DSAA Reports Control System is managed by the Data Management ** Division 'of the Comptroller Directorate, DSAA. Requests for new reporting requirements should be directed to that office. A Reports Control Symbol (RCS) will be assigned according to the nature of the reporting requirement, e.g., whether it relates to MAP, FMS, a combination of programs, or a one-time report. See Figure E-4 for the DSAA Reports Control format.
D.REPORTING INSTRUCTIONS.
1. Price and Availability Report (RCS: DSAA(Q) 1138).
a. The Price and Availability (P&A) Report, required by Section 28 of the Arms Export Control Act, is forwarded quarterly to members of Congress and top-level Defense and State Department officials. It is an important tool used to inform the Congress of major potential FMS cases and it assists the Congress in carrying out its oversight authority of arms transfers, particularly to the Third World. For these reasons the P&A report must contain complete, accurate, and timely information to serve its intended purpose.
b. It is important that all relevent information is reported regardless of its sensitivity. Releasability will be determined by the Director, DSAA, in conjunction with the Secretary of State.
c. The report is due to the Congress on the 15th of the month following the quarter being reported. Input from the Military Departments is due to the DSAA Comptroller, ATTN: Data Management Division, no later than the third day of the month following the quarter being reported and should be submitted in two parts. (See Figure E-1 for format):
(1) Part I should list each price and availability estimate provi ded duri ng the quarter to a forei gn country with respect to a poss i b 1 e FMS saTe of major defense equipment (MOE) for $7 million or more or of any
E-1 Change No.7, 15 September 1986
*
DoD 5105.38-r~
other defense articles or services for $25 million or more. Each entry should specify the following:
i (a) the name of the country to which the estimate was I
provided; (b) the name of the articles or services inVolved; (c) the quantity involved; and (d) the price estimate provided.
(2) Part II should list each request received from a foreign country during the quarter being reported, for the issuance of a letter of offer to sell defense articles or services if (1) the proposed sale was not previously reported under Part I, and (2) the request involves a proposed sale of MDE for $7 million or more or any other defense articles or services for $25 million or more. Each entry should include the following:
(a) the name of the country which made the request; (b) the date of the request; (c) the defense articles or services involved; (d) the quantity involved; and (e) availability terms requested.
To facilitate the development of Part II, Military Department Desk Officers should informally coordinate the information with their counterparts in the DSAA Operations Directorate.
d. A P&A request is not:
(1) A message or letter from a customer requesting Planning and Review (P&R) data;
(2) An oral request; (3) A request for data on several systems (i.e., customer is
going through a source selection process); however, it becomes a reportable P&A request when the source selection is complete; or
(4) A request for price/delivery data required to facilitate country decisionmaking on overall equipment purchase plan or budget.
2. Excess Defense Articles (EDA) Sold Under FMS (RCS:DSAA(Q)1118). *
a. House Report No. 96-70 on the International Security Assistance Act of 1979, dated 24 March 1979, requires quarterly reporting of all outstanding LOAs and accepted LOAs to sell excess defense articles (EDA) through FMS procedures to foreign governments or international organizations, specifying (1) implementing agency; (2) country; (3) case number; (4) acquisition cost to the U.S. Government; and (5) sales value. The report will include spare parts suppl ied from defense stocks at inventory price if they are specifically identified as EDA in the LOA, and exclude grants or sales of: MAP redistributabl e and MAP Owned Materie 1 (MAPO~1) property, shi ps, scrap and demilitarized EDA. Implementing agencies are encouraged to initiate separate cases for EDA. However, if separate cases are not used, each case wi 11 identify the EDA item(s) therein.
b. The report should be prepared quarte.rly as of the last day of * the last month of the quarter and is due in the DSAA Comptroller, Data *
E-2 Change No.7, 15 September 1986
DoD 5105.38-M
Management Division, by the 15th of the following month. The DSAA Comptroller, Program Control Division, is designated as the coordinating office for all EDA sold under FMS in addition to prevailing coordination currently required in the SAMM for FMS cases. See Figure E-2 for sample reporting format.
3. Foreiqn Militar Construction Sales (RCS: DSAA (0) 1145). The AECA, Sectlon requlres quarter y reportlng 0 eac orelgn ,litary Construction sale made under Section 29 during the quarter for which such report is made. The report should cover all sales of design and construction services to any eligible foreign country or international organization specifying (1) the purchaser; (2) the U.S. Government department or agency responsible for implementing the sale; (3) an estimate of the dollar amount of the sale; and (4) a general description of the real property facilities to be constructed pursuant to such sale. These reports must be submitted to the DSAA Comptroller, Data Management Division, not later than 20 days after the reporting period. See Figure E-3 for a sample reporting format.
[This space left blank intentionally.]
E-2.1 Change No.7, 15 September 1986
000 5105.38-M
\
[This page left blank intentionally.]
, E-2.2 Change No.7, 15 September 1986
ITI I
W
1.0 00 CTI
PRICE AND AVAILABILITY' REPORT (RCS: DSAA{Q) H38) ,
QUARTER ENDING (Agency) (Date)
PART I-PRICE AND AVAILABILITY ESTIMATES PROVIDED
COUNTRY DESCRIPTION OF ARTICLES/SERVICES QUANTITY PRICE EST." DATE INFORMATION PROVIDED LETTERlliSG. REF.
PART II REQUESTS FOR ISSUANCE OF A LEnU OF OFFER RECEIVED'
COt;~TRY DATE OF DATE REQUEST P&ATERMS
REQl"EST RECEIVED. DESCRIPTION OF ARTICLES/SERVICES QUANTITY REQUESTED (IF ANY)
(j") ;:0 c: I'l) ;:0 "0 ITI 0 -s ITI M- I ...... ;:0 n U'l
0 U'l )::0 )::0
,0
....... ...... w 00
FIGURE E':'2 Report of EDA·Sbld Under For~ignMilitary Sales'
SAWLE FORMAT
\ Reportiof EDA Sold Under
(Date - Last Day of Reporting Quar~er)
Foreign Mi litary Sales (RCS: DSAA(M) 1118) (See Notes)
FMS Offers Outstanding Cases Accepted
000 5105. 38-M
Sales Acquisition Value Cost to USG
Sales Acquisition :~ Cost to USG
1. Country: Case Number
-.-• --
2. Country: Case Number
Total (Current Quarter)
Cumulative Total (Current FY to date):
Note 1: Include In the FMS Offers Outstanding column all FMS LOAs issued for EOA that have been neither accepted nor cancelled even If Issued prior ,to the reporting period.
Note.2: When a case moves from the cases offered column to the cases accepted column record trle sales value and acquisition cost only in the cases accepted column.
, .
Note 3: Delete cancel led cases from cumulative totals'of subsequent reports and provide countries and case numbers In footnotes of each report Immediately following each cancellation.
FIGURE E-7. Report of EDA Sola. Under Foreign Military Sales.
E-4 Change No.7, 15 September 1986
*
*
000 5105.38-M
FIGURE E-3 Foreign Military Construction Sales
FOREIGN MILITARY CONSTRUCTION SALES
(RCS: DSAA(Q) 1145)
Quarter Beginning Quarter Ending
(In Full Dollars)
Implementing Estimated Description of Facilities Country Agency Sales Value To Be Constructed
FIGURE E-3. Foreign Military .construction Sales.
E-5 Change No.7, 15 September 1986
000 5105.38-M
FIGURE E-4 ** DSAA REPORTS CONTROL SYSTEM
DSAA REPORTS CONTROL
" o NEw REPORT ~REVI5EO REPORT o REPORT SURVE V
2. EXACT TITL.E OF REPORT 3· SECURITY CLASSIFICATION
4. REPORTING AGENCIES OR A.CTIVITIES
S· FREQUENCY e· AS OF DATE
7. OUE OATE II. PERIOD COVERED BY INITIAL REPORT
g. RECIPIENTS
10. DES CRIPTION
I I. JUSTIFIC A TlON
,., IMPLEMENTING OIRECTIVE OR INSTRUCTION (two copln .Ullched)
13· ARE FORMS INCLUDEO? DYES DNO IF 50. HOW ARE THEY PROCURED?
' •. METHOD OF rRANSMISSION
IF TRANSMITTED ELECTRICALLY, CAN OATA BE FO~WARDED BY OTHER THAN ELECTRICAL ME ... N5 DURING MINIMIZE? DYES DNO , ., UNDER WHAT CONDITIONS IS REPORT AUTOMATICALLY CANCELLEOl
'IS· DIRECTORATE APPROVAL
17. REQUESTING OFFICE
18. RESPONSIBLE INDIVIDUAL
IQ. REPORTS CONTROL. SYMBOL AS5IG~EO
20. APPROV EO OAT!!.
FIGURE E-4. DsAA Reports Control System.
E-6 Change No.7, 15 September 1986
000 5105.38-M
FIGURE E-5 INSTRUCTIONS FOR PREPARATION OF DSAA REPORTS CONTROL FORM
DESCRIPTION OF DATA REQUIRED:
Item 1: Indicate whether this is a new report, an old report which is being revised, or the result of a survey.
Item 2: Exact Title of Report. The title will be carefully selected to be brief, descriptive of the subject of the report, and not in conflict with titles of other reports.
Item 3: Security C1 ass ificati on. Indicate the hi ghest cl ass ification that the data is expected to contain.
Item 4: Reporting AQencies or Activities. Indicate agencies and/or activities that are requlred to report under this Reports Control Symbol.
Item 5: Frequency. Indicate annual, semi-annual, quarterly, monthly, etc.; however, do not use bi-weekly, bi-month1y, or bi-annua1ly as these terms tend to become misinterpreted; rather use twice a week, every two weeks, every two months, etc.
Item 6: As Of Date. Indicate the last day of the reporting period; for example, the 15th of each month, every Saturday, the last day of each Quarter, etc.
Item 7: Due Date. Indicate the date the report is due to recipient by number of days following lias of" date, e.g., 7 days, 30 days, etc.
Item 8: Period Covered by Initial Report. Indicate the beginning and final date of period to be covered by first report. This entry vlill remain blank when this form is used in connection with a survey of reports.
Item 9: Recipients. Indicate a complete list of recipients of the report.
Item 10: Descri~tion. This information may be generalized but should reflect a clear and conClse summary of the data to be reported.
Item 11: Justification. This entry will be a full justification for the report. Sufficient information will be entered to permit the reviewer without further amplification to analyze and understand the need for and specific use to be made of the data and what acti on can be taken based on the data received.
Item 12: 1m lementin Directive or Instruction. Indicate the specific refer-lrectlve an or lnstructlon w ich will implement the proposed
reporting procedures. If there is no official DOD directive or instruction covering the proposed reporting instructions, indicate the applicable reference number (I number). Please include two copies of specified implementing directive, instruction, and/or implementing memorandum with application.
FIGURE E-5. Instructions for Preparation of DSAA Reports Control Form.
[-7 Change No.7, 15 September 1986
**
000 5105.38-M
Item 13: Are forms included? Indicate if specific forms or formats are to be used in submitting report. If so, indicate if they are to be supplied, procured, or prepared on an "ad hoc" basis by thereporting.agency.
Item 14: Method of Transmission. Indicate method of. transmitting report, e:g., mail, pouch, electrical means, etc. If transmitted electrically, indicate whether data can be forwarded by other than electrical means during crisis situations when MINIMIZE is in effect. Extreme discretion shoulc be used when determining the need for electrical transmission during tlINIMIZE.
Item 15: Under what conditions is report automatically cancelled? Are there any conditions under which the· proposed report woul d tie autcmatica) ly cancelled, i.e., specific period of time, national emergency, etc.
Item ]6: Directorate Approval. Indicate. the directorat~ requesting the proposed report and the slgnature of the director. . .
Item 17: Reguesting Office. Indicate office requesting the Reports Control Symbol.
Item 18: Responsible Individual. Indicate the name, room number, and telephone number of the official most knowledgeable in the field of the subject rep·ort.
Item 19: Reports Control Symbol Assirned. For new reports, this entry will be made by the Reports Control or icer; for revised reports and report surveys, please include previously assigned reports control symbol.
Item 20: Approved. This will be filled in by Reports Control Officer.
FIGURE E-5. Continued.
E-8 Change No.7, 15 September 1986
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STATUTORY REPORTS TO CONGRESS SUBMITTED BY DOD ON SECURITY ASSISTANCE
1.
2.
Report Item
Notification to Congress of Defense Articles, Services, Education and Training provided under emergency drawdown authority
Stockpiling of Defense Articles
3. U.S. Armed Services Personnel Assigned to SAO's: two reports
5.
(a) Presidential waiver of Congressional limitation of six Armed Forces personnel incountry
(b) Notification of increase in U.S. Armed Forces personnel over levels indicated in the CPD for the FY in which the increase occurs
Notification of Program Changes
Notification of Obligation of Funds not justified for a particular fiscal year
6. Annual Assessment on NATO Readiness
Authorizing Legislation
Sec. 506(b)(2); FAA of 1961
Sec. 514(e) ,FAA of 1961
Sec. 515(c)(1), FAA of 1961
Sec. 515(c)(2), FAA of 1961
Sec. 634A, FAA of 1961
Foreign Assistance & Related • Programs Appropriations Act,
(For FY 1986, Sec. 524, P.L. 99-190)
10 USC, Sec. 133a
Recipient··
SHR, Pres. of Senate, HFAC, SFRC, HAC, SAC
SHR, Pres. of Senate, HFAC, SFRC
HFAC, SFRC
HFAC, SFRC
HFAC, SFRC, HAC, SAC
HAC, SAC
HASC, SASC, HAC, SAC
Trigger
Any provision of aid under Sec. 506, FAA of 1961; at least monthly
Creation of new, or addition to an existing stockpile valued at more than $10M
30 days .prior to introduction of additional personnel
30 days prior to introduction of additional personnel
15 days in advance of obligagation of funds not justified, or in excess of amounts justified to the Congress for obligation under the FAA and AECA
15 days in advance of obligation of funds not justified, or in excess of amounts justified to the Appropriations Committees for a particular fiscal year
Part of annual budget release to Congress
Responsible DOD Component
DSAA/COMPT/FMD
A&LlDASD FOR LOG & MATERIEL MGMT
DSAAIPLANS/MANPOWER
DSAA/PLANS/MANPOWER
DSAAICOMPT/FMD
DSAAICOMPT/FMD
OASDIISP
-i » OJ r-I'T1
I'T1 I ......
* *
0 0 0
CJ1 ...... 0 CJ1
W CP I 3:
I'T1 I ......
a
7.
8.
9.
'Report Item
Notification of sales or transfers from U.S. active forces' inventories or current production
Sale of U.S. War Reserve Stocks, POt1CUS, or decrement stock to non-NATO purchasers
Report on NATO acquisition of noninteroperable major weapons systems to be used by U.S. forces in Europe under the terms ,of the North Atlantic Treaty
10. Notification of Waiver of NonRecurring R&D and Production Costs
11. Report on Sign'ificant Hostilities or Terrorist Acts
12. Billing upon delivery from stock with 120-day interest-free period after delivery
13. Report on FMS Training Standardization Agreements with NATO, Japan, Australia, or New Zealand
, 14. Report on sales from stocks having an adverse impact on the readiness of U.S. Armed Forces
15. Billing upon delivery. from new procurement.with 120-day payment after delivery
STATUTORY REPORTS TO CONGRESS SUBMITTED BY DOD ON SECURITY ASSISTANCE
Authorizing Legislation
10 USC, Sec. 133b
10 USC, Sec. 975
10 USC, Sec. 2457(d)
Annual DOD Appropriation Act provision (Sec. 8039, DOD Appropriation Act, 1986)
Sec. 21(c)(2), AECA
Sec. 21(d) (last sentence), AECA
Sec. 21(g), AECA
Sec. 21(i), AECA
Sec. 22(b), AECA
Recipient*
SHR, Pres. of Senate, HASC, SASC
SHR, Pres. of Senate, HASC, SASC
SHR, 'Pres. of Senate HASC, SASC
HAC, SAC
SHR, ·Pres. Pro Tem. Senate
SHR, Pres. of Senate, HAC, SAC
SHR, HAC, SAC, HASC SASC, HFAC, SFRC
SHR, SASC, HASC, HFAC, SFRC
SHR, Pres. of Senate, HAC, SAC
Trigger
Before sillning of an LOA' to transfer any defense article valued at $50M or more from ,
I
active U.S •. forces' inv"entories: or from current production
NLT 60 days after Presidential determination of 'an "international crisis"
NLTFebruary 1st each year
In advance of any proposed NRC waiver regarding FMS of major defense eqUipment (normally 15 days in advance)
Within 48 hours of change in status of hostilities or terrorist acts which would endanger American lives or property
Presidential determination and budget request for emergency funds
Responsible DOD Componen t
DSAA/COMPT/FMS CONTROL
DSAA/OPS/CTRY DESK OFFICER
USDR&E
DSAA/OPS/MGMT
GEN COUNSEL, DOD
DSAA/OPS/MGMT
U.S. conclusion of any stan- : DSAA/COMPT/TMD dardization agreement on train-: ing for identified purchaser
In the event a proposed sale DSAAlOPS/,CTRY DESK from stocks could have signi- OFFICER ficant adverse impact on ~m- ': bat readiness of U.S. forces
Presidential determination and DSAAlOPS/MGMT budget request for emergency funds
CJ o CJ
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w ex> I 3:
~ (J1
Vl rt>
U rt rt> 3 0" rt> .,
16.
Report Item
Annual Estimate & J.ustification for Sales Program (Congressional Presentation for Security Assis-tance (CPO»:
(a) The "Javits" Report: covering all sales of major weapons or weapons related defense equipment for $7M or more, or of any other weapons or weapons related equipment for $25M or more, which are con-sidered eligible for approval during the current calendar year. Also an indication of which sales are most likely to result in issuance of a LOA during such year
(b) Estimate of total sales and licensed commercial exports
(c) Estimate of aggregate dollar value and quantity of defense ar.ticles and defense services, IMET, MAP, credits and guaran-ties to be furnished in the next fiscal year
(d) Report on Cash Flow Financing
(e) Analysis and description of USG services for which reim-bursement is provided .under
.Sec. 43(b}or 21(a} of the AECA
(f) Amount of funds in reserve for guaranties
(g) Progress made in the Korean Force Modernization Program
(h) Status of each loan and con-tract of guaranty or insurance
STATUTORY REPORTS TO CONGRESS SUBMITTED BY DOD ON SECURITY ASSISTANCE
Responsible Authorizing Legislation 'Recipient* Trigger DOD Component
Sec. 25(a) AECA SHR, Pres. of. Senate, NLT February 1st of each year DSAAICOMPT/DMD HAC, SAC, HFAC, SFRC, HASC, SASC, HBC, SBC, CBO
Sec. 25(a)( I}, AECA Note: Reported separately to DSAA/ COMPT / FMS State/PM and not part CONTROL of the CPD
Sec. 25(a}(2} ,AECA DSAA/COMPT/DMD
Sec .. 25(a)(5}(A), AECA DSAA/COMPT/DMD
Sec. 25(a}(5}(B), AECA Note: Reported separately DSAAI COMPT / FMD and not part of CPD
Sec. 25(a} (6), AECA SHR, SFRC Note: Reported separately DSAAICOMPT/DMD and not part of CPD
17. Quarterly Report of Security Assistance Surveys
18. Copies of Security ·Assistance Surveys
19. Proposed Agreements for NATO Cooperative Projects
20. Quarterly Report on Price and Availability; LOA Requests for $71'1 or more of MDE/$25M or more of defense articles & services
21. List.of all accepted andunaccepted LOAs to sell excess defense articles through ·FMS procedures
22.
23.
Waivers of non-recurring recoupment charges
Quarterly Reports on Commercial and Governmental Military Exports:
(a) List of all unaccepted LOAs valued at $11'1 or more for MOE
(b) List of all accepted LOAs valued at $11'1 or more for MDE; total value of all defense articles and services sold during the fiscal 'year
(c) Cumulative dollar amounts of FMS direct credit-and guaranty agreements made during the fiscal year
STATUTORY REPORTS TO CONGRESS SUBMITTED BY DOD ON SECURITY ASSISTANCE
A'uthorizing Legislation
Sec. ,26(b), AECA
Sec. 26(c), AECA
Sec. 27(f), AECA
Sec. 28, AECA
,
Recipient·
SHR, SFRC
SHR, HFAC, SFRC
SHR, HASC, SASC, HFAC, SFRC
SHR, SFRC
HFAC Report No. 96-70 Un·ter-: SHR, SFRC national Security Assistance Act of 1979), 24 March 1979~ page 25
HGOC Report No. 97-214, 31 July 1981
Sec. 36(a), AECA
Sec. 36(a)(I), AECA
Sec. 36 (a) (2) ,AECA
Sec. 36(a)(3), AECA
SHR, SFRC
SHR, SFRC
Trigger Responsible
,DOD Component
': NLT 60 days after end of each DSAAI COMPT I,DMD quarter. This is included in reports required by Sec. 36(a), AECA. See Report Item 23.
On request of Chairman, HFAC, DSAA/COI-IPT/DMD or Chairman, SFRC
NLT 30 days prior to signature DSAAlOPS/MGMT , of agreement on behalf of USG
NLT 15 days after end of each DSAA/COMPT/DMD calendar quarter
NLT 60 days after end of each DSAAICOMPTIFMD quarter. This is included in reports required by Sec. 36 (a), AECA. See Report Item 23.
Included in reports required by Sec. 36(a), AECA. See Report Item 23.
NLT 60 days after end of each quarter
., ,
DSAA/OPS/MGMT
DSAA/COMPT/DHD
DSAA/COHPT/DMD
DSAAI COMPTI DMD
DSAA/COMPTIFR&CPD
Cl o CJ
tTl to-' o tTl
w 00 I 3:
m I ......
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Report Item
23. (d) Dollar amounts of Foreign Military & Construction Sales Agreements concluded during the quarter, projections for remaining quarters (FMCS stated separately)
(e) Foreign Military Construction Sales (Sec. 29, AECA) made during the quarter
(f) See Items 17, '21, & 22 above
24. Report of Proposed FMS which are:
(a) For defense articles or services valued at $50M or more, or
(b) For design and construction services valued at $200M or more, or
(c) MDE valued at $14M or more
25. Report of Enhancement or Upgrade of Sensitivity of Technology of Items Previously Notified Under Sec. 36(b)(1), AECA
26. Notification on Enhancement or Upgrade of Capability or Sensitivity of Technology
27. Special Defense Acquisition Fund (SDAF) Annual Report
28. Report on Proposed Leases of' Defense Articles
STATUTORY REPORTS TO CONGRESS SUBMITTED BY DOD ON SECURITY ASSISTANCE
Authorizing Legislation
Sec. 36(a)(5) & (6), AECA
Sec. 36(a)(9), AECA
Sec. 36(b)(1), AECA
Sec. 36(b)(5)(A),' AECA
Sec. 36(b)(5)(C), AEtA
Sec. 53(a), AECA'
Sec. 62, AECA .. '~ ,
Recipient"
SHR, HFAC, SFRC, HASC, SASC, HAC, SAC
SHR, HFAC, SFRC, HASC, SASC, HAC, SAC
SHR, HFAC, SFRC, HASC. SASC, HAC, SAC
SHR, Pres. of Senate HAC, SAC, HFAC, SFRC,
I HASC, SASC, HBC, SBC, CBO
SHR, HFAC, SFRC, HASC, SASC'
Trigger
15 days before issuance of a LOA to NATO, NATO members,
.": Japan. Australia. or New Zealand; or 30 days before
, issuance of a LOA to other purchasers.
45 days before delivery of previously notified item(s)
15/30 days prior to a proposed enhancement or upgrade which meets 36(b)(1) thresholds
NLT December 31st of each calendar year.
NLT 30 days before entering into or renewing any lease agreemen"t for one year or longer.
Responsible DOD Component
DSAA/COMPT/DMD
DSAAI COHPT 1 Dt1D
DSAAI COMPT 1 Fi1S CONTROL
DSAA/COMPT/FMS CONTROL
DSAAI COMPT I FMS CONTROL
DSAA/PLANS/SDAF
DSAA/OPS/MGMT & DSAAI COMPTI HIS CONTROL
o o P tJ1 ...... a tJ1
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n :::r OJ ::l
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.....
....... (J1
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....... ~ 00 0\
'STATUTORY, REPORTS TO CONGRESS SUatUTTED BY DOD ON SECURITY ASSISTANCE
, "
Authorizing Legislation Report Item
29. Reprogramming of FMS concessional credits
'Title III, Foreign Assistance Appropriations Act,
I· 1986
30. Aircraft grants or sales to El Salvador during FY 1986 or FY 1987
"Abbreviations:
Sec. 538, Foreign Assistance Appropriations Act, 1986 & Sec. 702(d) of P.L. 99-83
SHR - Speaker of the House of Representatives HBC - House Budget Committee SBC - Senate Budget 'Committee CSO - Congressional Budget Office HAC - House Appropriations Committee SAC - Senate Appropriations Committee HFAC - House 'Foreign Affairs Committee SFRC - Senate Foreign Relations Committee HASC - House Arr.:ed Services ,Coromi ttee SASC - Senate Ar,ed Services Committee
Recipient"
HAC, SAC, HFAC, SFRC
HAC, SAC, HFAC" SFRC
Trigger
,15 days in advance of obligation of funds. See Report Items ,q and 5
15, days in advance of LOA issuance or delivery
Responsible DOD Component
DSAA/COMPT/FMD
DSAA/OPS/LA
0 0 0
(J1 ....... 0 (J1
W 00 I 3:
CJ ::r OJ ~
'.0 (l)
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Reports Con trol Symbol (RCS)
SAMM, TABLE E-2
CURRENT REPORTING REQUIREMENTS UNDER .DSAA REPORTS CONTROL SYSTEM
Report Title Reporting Frequency Reporting Components Responsible Office
------,--------------------------------------I
GRANT AID REPORTS::
DSAA(AR)100C
DSAA( M) 100U
DSAA(AR)lC16
FOREIGN MILITARY SALES REPORTS:
DSAA(M) 1W1
DSAA(M)"ll
DSAA(Q)'112
DSAA(Q)' 113
DSAA(AR)111U
DSAA(Q)1118
DSAA(Q)1119
Grant Aid (HAP/IMET) Reporting System
Identification of Reimbursement for Di'sposal of HAP Property
Cauntry and Amount of Increase Over CPD Levels (Section "3, Foreign Assistance and Related Programs Appropriation Act, 1915)
Financial Procedures' Applicable to Military Procurement Agreement Between U. S·. and Federal Republic of Ge·rmany
Monthly Report of'Disbursements/Collections Transactions for . DSAA
Recoupment of Nonrecurring Costs on Sales of USG Products and Technology (DOD Directive 21·UC'.2)
FMS'Case Listings of Major Defense Equipment (MDE) Valued .at $1 Million .or More & Supporting ·Tables· Showing c.urrent Year Activity (Feeder for Section 36(a) .. Arms Export Cantrol Act)
FMS Letters of Offen to. Sell Defense . Articles or Services for·$1U Million of MDE or $5C Million of Other (Feeder for Section 36( b). Arms Export Control Act)
As Required
Monthly
As Required
Monthly
Monthly
Quarterly
Quarterly
As Required
Excess Defense ArtiCles Sold to Foreign ~"::'Quar.terly Governments or International Organizations
:. at Acquisition Cost (Feeder for Section 36(a), Arms Export Control Act; required by H.R. 96-1C, March 2U, 1919)
Analysis of FMS Agreements Between .the : Army Corps of Engineers and the Govern:. ment of Saudi Arabia' (Later expanded to
include any other countries)'
Monthly
All Implementing Agencies
All Implementing Agencies
DSAA/COMPT
All Implementing I Agencies, SAAC
SAAC
All Implementing Agencies, SAAC
All Implementing Agencies
All Implementing Agencies
" All Implementing' : Agencies
Army Carps of Engineers'
DSAA/COMPT/DMD
, DSAA/COHPT/FR&CPD
DSAA/ COMPT / FMD & THD
SAAC
DSAA/COHPT/FR&CPD
DSAA/COMPT/FMD
DSAAICOMPT /DHD
DSAA/ COMPT /FMSCD
DSAAlCOHPT /DHD
DSAA/COMPTlDHD'
* *
o o o (J"I ...... o (J"I,":
w::.-: 00 • I 3:
,." , ...... 0'\
...... U1
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m "'C rt m 3 CT m ~
Reports Control Sym.bol (RCS)
FOREIGN MILITARY SALES REPORTS (Continued) :
DSAA(A)1121
DSAA(Q)1126
DSAA(A)1128
DSAA(W) 1129
DSAA(AR)1133
DSAA(AR)1135
DSAA(Q)1131
DSAA(Q) 1138
DSAA(M) llUl
DSAA(Q)1 1U2
DSAA(Q)11 U3
DSAA(SA)IIUU
DSAA(Q)11 U5
DSAA(Q)'1U6
., "
CURRENT REPORTING REQUIREMENTS UNDER ·DSAA REPORTS CONTROL SYSTEM
. Report Ti tIe
Number of U.S. Officers and Employees Engaged in Services to Foreign Governments under FMS (Feeder for Section 36( a) (1), Arms Export Control Act)
Major Defense Equipment List
Budget Call - Cost of Administering the Foreign ,MilI tary Sales Program
FMS Credit Accounting System
Notificatio~.ofSal~s or T~ansfers from 'U.S. Active Forces' Inventories or Current Production (Feeder 'for Section 133 b, 10 USC)
Peacejammer - Restructuring 'of the Iranian FMS Program
Security Assistance Surveys (Feeder for Section 36(a), Arms Export Control Act; required by Sec. 26(b), AECA)
Price and Availability Report. (Feeder for Section 28( a), Arms Export Control Act)
FMS Selected Constructive '(Physical) Deliveries
Intermediate Export Fighter Program (FX) Cost Tracking Report
Security Assistance Master Planning and phasing Worksheet (SAMPAP)
FMS Case Closure
Foreign Military Construction Sales (Feeder for Section 36(a)(9), Arms Export Control Act)
Unexpired Leases of DOD Property of Any Value (SAMM, page 12-2U)
<, ,
, .,
, .,
Reporting Frequency
Annually
Quarterly
Annually
Weekly
As Required
As Required
Quarterly
Quarterly
Monthly
Quarterly
Quarterly
Semi-annually
Quarterly
Quarterly
, ", Reporting Components
'All Implementing
" , Agencies
:: All Implementing Agencies
All Implementing I . ~g~n?i~s ,
DSAAI tOI~PTlFR&CPD
All Implementing Agencies
All Implementing Agencies
All Implementing Agencies
All Implementing Agencies
All Implementing Agencies
Air Force
Navy, Air Force
All Implementing AgenCies, SAAC
All Impl ementing Agencies
All Implementing Agencies
Responsible Office
DSAAI COMPT IDMD
DSAA/OPS/MGMT
DSAAI COMPT I BUD
DSAA/COMPT/FR&CPD
DSAAI COI~PT I FMSCD
DSAA/OPS/NESA
DSAA/OPS/MGMT
" DSAAI COMPT IDMD
SAAC
DSAAI COMPT I BUD
DSAA/PLANS/WPNS
DSAA/COMPT/FMD
DSAA/COMPT/DMD
DSAA/OPS/MGMT
a o CJ
U1 ...... a U1
w 00 , 3:
fT1 I .......
........
(""") ::T III ::s
1.0 ro :z o .
Reports Control Symbol (RCS)
FOREIGN MILITARY SALES REPORTS (Continued) ;
DSAA(M)1147
DSAA(O)1148
DSAA(Q)1149
DSAA(AR)1150
DSAA(Q) 1152
DSAA(Q) 1153
DSAA(A)1154
DSAA(A)1155
OTHER REPORTS;
DSAA(AR) 1200 ( Formerly DSAA(AR)110(\)
DSAA(Q)1201
DSAA(Q) 12C'4
DSAA(A)1211
DSAA(A)'213
DSAA(A)'215
CURRENT REPORTING REQUIREMENTS UNDER DSAA REPORTS CONTROL SYSTEM
Report Ti tIe
U.S. Military Components' Deposits to , Special Defense Acquisition Fund
Royal Saudi Naval Sources FMS Financial Report
Status Report on Sale of Govt-Furnished Equipment/Materiel and Related Quality Assurance (OoD Directive 4175.1)
Intensive Financial Management Report
MAP Overhead Support Activities and SAO Budget Execution Reporting
Quarterly Status of FMS,Administrative Expenses Allotment
Report of FMS Administrative Fund Representational Expenditures
Report on Cash Flow Financing (Sec. (25(a)(5)(B), Arms Export Control Act)
, Foreign Military Sales Reporting System
,
Reporting Frequency
Monthly
Quarterly
Quarterly
As Required
Quar·terly
Quarterly
Annually
Annually
As Required
Military Assistance International Balance Quarterly , of Payments (IBOP) Transactions :.,
Export Licenses and Approvals (Feeder for Section 36(a)(4), Arms Export Control Act)
Value of Real Property Transfers (Senate Report on Hearings Before Committee on Appropriations, Part 2)
The Journal
Congressional Presentation for Security Assistance (Section 25(a), Arms Export Control Act)
Quarterly
Annually
Annually
Annually
, ,- ,
Reporting Components Responsible Office
All Implementing DSAA/COMPT/FR&CPD Agencies
Army Corps of Engineers, DSAA!COMPT!FMD Navy
Army, Navy, Air Force, SAO's DSAA!OPS!MGMT
Army, Navy, Air Force, Others, as directed
Army, Navy, Air Force, Unified Commands
Army, Navy, Air Force,
Army • Navy., Air .. Force
DSAA/COMPT
All Implementing AgenCies, SA,AC
SAAC,
Army, Navy, Air Force, ASD (Admin), Treasury, ExportImport Bank, Comm. Banks
Office of'Munitions Control, Dept of State
Army, Navy, Air force
DSAA/COMPT/DMD
AID, ACDA, DOD, State Department
DSAA! COMPTI FMD
DSAA!COMPT/BUD
DSAA! COMPTI BUD
DSAA! COMPT I BUD
, DSAA! COMPTI FMD
DSAA! COM PTlDMD
, DSAA!COMPT/DMD
DSAA!COMPT!DMD
DSAA! COMPT IDMD
DSAA! COMPT IDMD
DSAA! CaMPTI D1~D
C1 o C1
U1 ....... o U1
(A>
CO I 3:
}} != Y' Cl
~ ;3 :z 3: '" :z ..... ~
'" ~ Z Cl 0 ::;l
~ -0
'" 0-
~ t. ~ -0
~ 8 0-
fT1 I I-' 00
("") ":::T CJ ::s
<.0 (1)
::z o
Reports Control Symbol (RCS)
OTHER REPORTS (Continued) :
DSAA(Q)1218
DSAA( M) 1219
DSAA(Q)1221
DSAA(Q) 1222
DSAA(Q)1226
DSAA(Q)1228
DSAA(A) 123C
DSAA(A) 1231
CURRENT REPORTING REQUIREMENTS UNDER DSA~ REPORTS CONTROL SYSTEM
Report Ti tIe
Military Manpower for MUGs, Missions·, MILGRPS
DSAA Monthly Fund Status Report
FMS Arrearages
Security Assistance Planning & Program Worksheets
Status of Coproduction Programs Approved Under Security Assistance Programs (DoD Directive 2CCC.9)
Special Defense Acquisition Fund (SDAF) Inventory Report
Foreign Military Trainee Positions of Prominence and Influence
10-41, 10-51, 10-54 Living Allowances, 10-22, 10-51, 10-60 Materials, 10-28 Mobile Training Teams, 10-52 Orientation Tours, 10-4, 10-15
Cha~~e No.8, 31 March 1987
PME Exchange Program, 10-70 Police Training, 10-4 Program Card Formats, 10-58 Program Management, 10-1 Reciprocal Exchange, 10-70 Third Country, 10-40 Tuition Rates, 10-50
TRANSPORT ATION Additional Terms/Conditions, 7-67 Cost Look-Up Table, APi>. F & G CrediULoan Conditions, 9-37, 9-77 Foreign Military Trainees, 10~51 Instructions on DD Form 1513, 7-30, 7-60 Of FMS Materiel, 8-17 Under Loan Agreements, 9-77 Use of DTS, 8-23
TYPE OF ASSISTANCE CODES, 7-92
WAIVERS, LOAN-RELATED TO TRANSPOR-TATION .
General, 9-37 Non-Availability, 9-38 Security, 9-39
\.
6 Change No.8, 31 March 1987
*U. S. GOVERNMENT PRINTING OFFICE: 1987/748-094/400 13
